As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of China Dongxiang (Group) Co., Ltd. (HKG:3818), it is a financially-robust company with a a great track record high-grade dividend payments, trading at a great value. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on China Dongxiang (Group) here.
Established dividend payer and good value
3818’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that 3818 manages its cash and cost levels well, which is an important determinant of the company’s health. 3818’s debt-to-equity ratio stands at 4.7%, which means its debt level is low. Investors’ risk associated with debt is very low and the company has plenty of headroom to grow debt in the future, should the need arise. 3818’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 3818’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the luxury industry, 3818 is also trading below its peers, relative to earnings generated. This bolsters the proposition that 3818’s price is currently discounted.
3818’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 8.9%.
For China Dongxiang (Group), I’ve put together three key factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for 3818’s future growth? Take a look at our free research report of analyst consensus for 3818’s outlook.
- Historical Performance: What has 3818’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.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 3818? 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 firstname.lastname@example.org.