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Attractive stocks have exceptional fundamentals. In the case of Beijing Tong Ren Tang Chinese Medicine Company Limited (HKG:3613), there’s is a financially-robust company with a great track record and an optimistic growth outlook. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Beijing Tong Ren Tang Chinese Medicine here.
Flawless balance sheet with reasonable growth potential
In the previous year, 3613 has ramped up its bottom line by 19%, with its latest earnings level surpassing its average level over the last five years. Not only did 3613 outperformed its past performance, its growth also exceeded the Pharmaceuticals industry expansion, which generated a 17% earnings growth. This is what investors like to see!
3613 is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that 3613 manages its cash and cost levels well, which is an important determinant of the company’s health. 3613 seems to have put its debt to good use, generating operating cash levels of 474x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
For Beijing Tong Ren Tang Chinese Medicine, I’ve put together three essential factors you should further examine:
- Valuation: What is 3613 worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether 3613 is currently mispriced by the market.
- Dividend Income vs Capital Gains: Does 3613 return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from 3613 as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 3613? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.