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I've been keeping an eye on CIMC-TianDa Holdings Company Limited (HKG:445) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe 445 has a lot to offer. Basically, it is a financially-robust company with a strong track record and a excellent growth outlook. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, take a look at the report on CIMC-TianDa Holdings here.
High growth potential with proven track record
Bullish market analysts are forecasting fast-growing 445 to deliver an exceptional sales growth rate of 69% over the next year. This underlies the notable 21% return on equity over the next few years leading up to 2022. Over the past year, 445 has grown its earnings by 92%, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, 445 also outperformed its industry, which delivered a growth of 19%. This is what investors like to see!
445 is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that 445 has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. 445’s debt-to-equity ratio stands at 23%, which means its debt level is reasonable. This indicates a good balance between taking advantage of low cost funding through debt financing, but having enough financial flexibility and headroom to grow debt in the future.
For CIMC-TianDa Holdings, there are three important aspects you should look at:
- Valuation: What is 445 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 445 is currently mispriced by the market.
- Dividend Income vs Capital Gains: Does 445 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 445 as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 445? 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.