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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on China Kepei Education Group Limited (HKG:1890) due to its excellent fundamentals in more than one area. 1890 is a financially-healthy company with an impressive track record and a buoyant future outlook. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on China Kepei Education Group here.
Good value with reasonable growth potential
Over the past few years, 1890 has demonstrated a proven ability to generate robust returns of 24%. Not surprisingly, 1890 outperformed its industry which returned 12%, giving us more conviction of the company's capacity to drive bottom-line growth going forward.
With a debt-to-equity ratio of 31%, 1890’s debt level is acceptable. This implies that 1890 has a healthy balance between taking advantage of low cost debt funding as well as sufficient financial flexibility without succumbing to the strict terms of debt. 1890 appears to have made good use of debt, producing operating cash levels of 1.09x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For China Kepei Education Group, I've compiled three relevant aspects you should further research:
- Valuation: What is 1890 worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether 1890 is currently mispriced by the market.
- Dividend Income vs Capital Gains: Does 1890 return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from 1890 as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 1890? 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.