Is CapitaLand Retail China Trust (SGX:AU8U) Potentially Underrated?

Attractive stocks have exceptional fundamentals. In the case of CapitaLand Retail China Trust (SGX:AU8U), there’s is a notable dividend-paying company that has been a rockstar for income investors, currently trading at an attractive share price. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my high-level commentary, take a look at the report on CapitaLand Retail China Trust here.

Established dividend payer and good value

AU8U is currently trading below its true value, which means the market is undervaluing the company’s expected cash flow going forward. Investors have the opportunity to buy into the stock to reap capital gains, if AU8U’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the reits industry, AU8U is also trading below its peers, relative to earnings generated. This bolsters the proposition that AU8U’s price is currently discounted.

SGX:AU8U Intrinsic Value Export October 15th 18
SGX:AU8U Intrinsic Value Export October 15th 18

AU8U’s reputation for being one of the best dividend payers in the market is supported by the fact that it has been steadily growing its dividend payments over the past ten years and currently is one of the top yielding companies on the markets, at 7.4%.

SGX:AU8U Historical Dividend Yield October 15th 18
SGX:AU8U Historical Dividend Yield October 15th 18

Next Steps:

For CapitaLand Retail China Trust, I’ve compiled three key factors you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for AU8U’s future growth? Take a look at our free research report of analyst consensus for AU8U’s outlook.
  2. Historical Performance: What has AU8U’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 AU8U? 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.