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I've been keeping an eye on Sinopec Shanghai Petrochemical Company Limited (HKG:338) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe 338 has a lot to offer. Basically, it is a dependable dividend-paying company that has been able to sustain great financial health over the past. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on Sinopec Shanghai Petrochemical here.
Flawless balance sheet average dividend payer
338'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 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 appears to have made good use of debt, producing operating cash levels of 2.64x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
338 is considered one of the top dividend payers in the market, and its profitability ensures that dividends are well-covered by its net income.
For Sinopec Shanghai Petrochemical, I've compiled three important aspects you should further examine:
- 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.
- Historical Performance: What has 338'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 338? 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 email@example.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.