China Telecom Corporation Limited (HKG:728): A Fundamentally Attractive Investment

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China Telecom Corporation Limited (HKG:728) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of 728, it is a well-regarded dividend-paying company that has been able to sustain great financial health over the past. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my broad commentary, read the full report on China Telecom here.

Established dividend payer with adequate balance sheet

With a debt-to-equity ratio of 19%, 728’s debt level is acceptable. 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’s has produced operating cash levels of 1.48x total debt over the past year, which implies that 728’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

SEHK:728 Historical Debt, June 21st 2019
SEHK:728 Historical Debt, June 21st 2019

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, June 21st 2019
SEHK:728 Historical Dividend Yield, June 21st 2019

Next Steps:

For China Telecom, I’ve compiled three important aspects you should further examine:

  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!

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 editorial-team@simplywallst.com. 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.