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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Greatview Aseptic Packaging Company Limited (HKG:468) due to its excellent fundamentals in more than one area. 468 is a financially-sound , dividend-paying company with a a strong history of performance. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Greatview Aseptic Packaging here.
Flawless balance sheet with proven track record and pays a dividend
In the previous year, 468 has ramped up its bottom line by 4.9%, with its latest earnings level surpassing its average level over the last five years. Not only did 468 outperformed its past performance, its growth also exceeded the Packaging industry expansion, which generated a -11% earnings growth. This paints a buoyant picture for the company. 468's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. 468's has produced operating cash levels of 2.05x total debt over the past year, which implies that 468's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
468's high dividend payments make it one of the best dividend stocks on the market, and its profitability ensures that dividends are well-covered by its net income.
For Greatview Aseptic Packaging, there are three important factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for 468’s future growth? Take a look at our free research report of analyst consensus for 468’s outlook.
- Valuation: What is 468 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 468 is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 468? 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.