Is China Mobile Limited (HKG:941) Potentially Underrated?

Attractive stocks have exceptional fundamentals. In the case of China Mobile Limited (HKG:941), there’s is a dependable dividend payer 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, take a look at the report on China Mobile here.

Flawless balance sheet average dividend payer

941 is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that 941 manages its cash and cost levels well, which is an important determinant of the company’s health. 941 currently has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is rather impressive for a HK$1.7t market cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.

SEHK:941 Historical Debt, March 10th 2019
SEHK:941 Historical Debt, March 10th 2019

941 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:941 Historical Dividend Yield, March 10th 2019
SEHK:941 Historical Dividend Yield, March 10th 2019

Next Steps:

For China Mobile, there are three key aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for 941’s future growth? Take a look at our free research report of analyst consensus for 941’s outlook.
  2. Historical Performance: What has 941’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 941? 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.