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Hailiang Education Group Inc. (NASDAQ:HLG) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of HLG, it is a company with great financial health as well as a a great track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Hailiang Education Group here.
Flawless balance sheet with solid track record
Over the past year, HLG has grown its earnings by 37%, with its most recent figure exceeding its annual average over the past five years. Not only did HLG outperformed its past performance, its growth also exceeded the Consumer Services industry expansion, which generated a -1.2% earnings growth. This is an optimistic signal for the future. HLG'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. Investors should not worry about HLG’s debt levels because the company has none! It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. HLG has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.
For Hailiang Education Group, I've put together three important factors you should further research:
Future Outlook: What are well-informed industry analysts predicting for HLG’s future growth? Take a look at our free research report of analyst consensus for HLG’s outlook.
Valuation: What is HLG 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 HLG is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HLG? 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 firstname.lastname@example.org. 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.