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Pacific Millennium Packaging Group Corporation (HKG:1820) 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 1820, it is a company that has been able to sustain great financial health, trading at an attractive share price. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Pacific Millennium Packaging Group here.
Good value with adequate balance sheet
1820's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that 1820 has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. 1820 appears to have made good use of debt, producing operating cash levels of 0.29x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. 1820's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. Investors have the opportunity to buy into the stock to reap capital gains, if 1820's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the packaging industry, 1820 is also trading below its peers, relative to earnings generated. This bolsters the proposition that 1820's price is currently discounted.
Next Steps:
For Pacific Millennium Packaging Group, I've compiled three relevant factors you should further research:
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Future Outlook: What are well-informed industry analysts predicting for 1820’s future growth? Take a look at our free research report of analyst consensus for 1820’s outlook.
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Historical Performance: What has 1820'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 1820? 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.