In This Article:
Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Shui On Land Limited (HKG:272) due to its excellent fundamentals in more than one area. 272 is a financially-sound company with a a great track record superior 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 Shui On Land here.
Excellent balance sheet established dividend payer
272'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 crucial insight into the health of the company. 272 seems to have put its debt to good use, generating operating cash levels of 0.32x 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. 272 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 272's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the market, 272 is also trading below other listed companies on the HK stock exchange, relative to earnings generated. This further reaffirms that 272 is potentially undervalued.
Income investors would also be happy to know that 272 is one of the highest dividend payers in the market, with current dividend yield standing at 5.4%. 272 has also been regularly increasing its dividend payments to shareholders over the past decade.
Next Steps:
For Shui On Land, I've put together three relevant factors you should further examine:
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Future Outlook: What are well-informed industry analysts predicting for 272’s future growth? Take a look at our free research report of analyst consensus for 272’s outlook.
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Historical Performance: What has 272'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.
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Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 272? 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.