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Should You Consider JBB Builders International Limited (HKG:1903)?

Simply Wall St

Attractive stocks have exceptional fundamentals. In the case of JBB Builders International Limited (HKG:1903), there's is a company that has been able to sustain great financial health, trading at an attractive share price. Below, I've touched on some key aspects you should know on a high level. For those interested in digging a bit deeper into my commentary, take a look at the report on JBB Builders International here.

Undervalued with excellent balance sheet

1903 is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. 1903 appears to have made good use of debt, producing operating cash levels of 7.7x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. 1903's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts' consensus forecast growth be correct. Compared to the rest of the construction industry, 1903 is also trading below its peers, relative to earnings generated. This further reaffirms that 1903 is potentially undervalued.

SEHK:1903 Price Estimation Relative to Market, September 16th 2019

Next Steps:

For JBB Builders International, I've put together three important factors you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for 1903’s future growth? Take a look at our free research report of analyst consensus for 1903’s outlook.
  2. Historical Performance: What has 1903'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 1903? 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.