Does The Data Make Hong Kong Exchanges and Clearing Limited (HKG:388) An Attractive Investment?
Want to participate in a research study? Help shape the future of investing tools and earn a $60 gift card!
Attractive stocks have exceptional fundamentals. In the case of Hong Kong Exchanges and Clearing Limited (HKG:388), there's is a financially-healthy , dividend-paying company with a a strong track record of performance. 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 Hong Kong Exchanges and Clearing here.
Flawless balance sheet with solid track record and pays a dividend
388 delivered a bottom-line expansion of 26% in the prior year, with its most recent earnings level surpassing its average level over the last five years. The strong earnings growth is reflected in impressive double-digit 23% return to shareholders, which paints a buoyant picture for the company. 388'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 suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. 388's has produced operating cash levels of 8.13x total debt over the past year, which implies that 388's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
388 is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
Next Steps:
For Hong Kong Exchanges and Clearing, I've put together three essential aspects you should further research:
Future Outlook: What are well-informed industry analysts predicting for 388’s future growth? Take a look at our free research report of analyst consensus for 388’s outlook.
Valuation: What is 388 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 388 is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 388? 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.
