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An Examination Of KWG Group Holdings Limited (HKG:1813)

KWG Group Holdings Limited (HKG:1813) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of 1813, it is a notable dividend-paying company with a excellent growth outlook, not yet factored into the price. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on KWG Group Holdings here.

Undervalued with high growth potential and pays a dividend

Investors in search for stocks with room to flourish should look no further than 1813, with its expected earnings growth of 25%. Earnings growth is paired with an eye-catching top-line trajectory also doubling over the same period, which indicates a high-quality bottom-line expansion, as opposed to those driven by unsustainable cost-cutting activities. 1813’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. 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. Also, relative to the rest of its peers with similar levels of earnings, 1813’s share price is trading below the group’s average. This bolsters the proposition that 1813’s price is currently discounted.

SEHK:1813 Future Profit November 20th 18

1813’s reputation for being one of the best dividend payers in the market is supported by the fact that it has been steadily growing its dividend payments over the past ten years and currently is one of the top yielding companies on the markets, at 9.7%.

SEHK:1813 Historical Dividend Yield November 20th 18

Next Steps:

For KWG Group Holdings, there are three fundamental aspects you should further examine:

  1. Historical Performance: What has 1813’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.
  2. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 1813? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.