Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
I've been keeping an eye on CNOOC Limited (HKG:883) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe 883 has a lot to offer. Basically, it is a financially-sound , dividend-paying company with a strong history of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on CNOOC here.
Excellent balance sheet established dividend payer
Over the past few years, 883 has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, 883 also outperformed its industry, which delivered a growth of 24%. This is an notable feat for the company. 883 is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. 883's has produced operating cash levels of 0.89x total debt over the past year, which implies that 883's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
883’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 5.9%.
For CNOOC, there are three essential aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for 883’s future growth? Take a look at our free research report of analyst consensus for 883’s outlook.
- Valuation: What is 883 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 883 is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 883? 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.