These Factors Make Sunningdale Tech Ltd (SGX:BHQ) An Interesting Investment

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I’ve been keeping an eye on Sunningdale Tech Ltd (SGX:BHQ) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe BHQ has a lot to offer. Basically, it is a financially-sound company with a an impressive history high-quality dividend payments, trading at a great value. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on Sunningdale Tech here.

Excellent balance sheet, good value and pays a dividend

BHQ’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 suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. BHQ seems to have put its debt to good use, generating operating cash levels of 0.38x 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. BHQ’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of BHQ’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the market, BHQ is also trading below other listed companies on the SG stock exchange, relative to earnings generated. This supports the theory that BHQ is potentially underpriced.

SGX:BHQ Intrinsic value, June 17th 2019
SGX:BHQ Intrinsic value, June 17th 2019

BHQ’s high dividend payments make it one of the best dividend stocks on the market, and it has also been able to maintain it at a level in which net income is able to cover dividend payments.

SGX:BHQ Historical Dividend Yield, June 17th 2019
SGX:BHQ Historical Dividend Yield, June 17th 2019

Next Steps:

For Sunningdale Tech, I’ve put together three essential aspects you should further research:

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