In This Article:
Sinopec Shanghai Petrochemical Company Limited (HKG:338) 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 338, it is a financially-healthy , dividend-paying company with a a great track record of performance. 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 Sinopec Shanghai Petrochemical here.
Flawless balance sheet established dividend payer
338 delivered a satisfying double-digit returns of 22% in the most recent year Not surprisingly, 338 outperformed its industry which returned 9.4%, giving us more conviction of the company’s capacity to drive bottom-line growth going forward. 338’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that 338 has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. 338’s has produced operating cash levels of 2.86x total debt over the past year, which implies that 338’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For those seeking income streams from their portfolio, 338 is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 9.6%, making it one of the best dividend companies in the market.
Next Steps:
For Sinopec Shanghai Petrochemical, there are three important factors you should further examine:
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Future Outlook: What are well-informed industry analysts predicting for 338’s future growth? Take a look at our free research report of analyst consensus for 338’s outlook.
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Valuation: What is 338 worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether 338 is currently mispriced by the market.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 338? 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.