Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Plover Bay Technologies Limited (HKG:1523) due to its excellent fundamentals in more than one area. 1523 is a financially-healthy , dividend-paying company with a a great history of performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Plover Bay Technologies here.
Excellent balance sheet with solid track record and pays a dividend
1523 delivered a bottom-line expansion of 42% in the prior year, with its most recent earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 32% return to shareholders, which is an notable feat for the company. 1523’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that 1523 manages its cash and cost levels well, which is a key determinant of the company’s health. 1523’s has produced operating cash levels of 12.24x total debt over the past year, which implies that 1523’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
1523 is considered one of the top dividend payers in the market, and it has also been able to maintain it at a level in which net income is able to cover dividend payments.
Next Steps:
For Plover Bay Technologies, I’ve put together three important factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for 1523’s future growth? Take a look at our free research report of analyst consensus for 1523’s outlook.
- Valuation: What is 1523 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 1523 is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 1523? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.