A Holistic Look At China Telecom Corporation Limited (HKG:728)

Attractive stocks have exceptional fundamentals. In the case of China Telecom Corporation Limited (HKG:728), there’s is a well-regarded dividend payer that has been able to sustain great financial health over the past. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on China Telecom here.

Excellent balance sheet established dividend payer

With a debt-to-equity ratio of 25%, 728’s debt level is reasonable. This implies that 728 has a healthy balance between taking advantage of low cost debt funding as well as sufficient financial flexibility without succumbing to the strict terms of debt. 728 seems to have put its debt to good use, generating operating cash levels of 1.2x 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.

SEHK:728 Historical Debt January 24th 19
SEHK:728 Historical Debt January 24th 19

728 is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.

SEHK:728 Historical Dividend Yield January 24th 19
SEHK:728 Historical Dividend Yield January 24th 19

Next Steps:

For China Telecom, I’ve put together three essential factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for 728’s future growth? Take a look at our free research report of analyst consensus for 728’s outlook.
  2. Historical Performance: What has 728’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 728? 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.