Looking At Nanfang Communication Holdings Limited (HKG:1617) From All Angles
Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Nanfang Communication Holdings Limited (HKG:1617) due to its excellent fundamentals in more than one area. 1617 is a company with great financial health as well as a an impressive history of performance. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my high-level commentary, read the full report on Nanfang Communication Holdings here.
Solid track record with adequate balance sheet
1617 delivered a bottom-line expansion of 48.5% in the prior year, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, 1617 also outperformed its industry, which delivered a growth of 38.5%. This is what investors like to see! 1617’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. With a debt-to-equity ratio of 35.8%, 1617’s 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.
Next Steps:
For Nanfang Communication Holdings, I’ve put together three essential factors you should further examine:
Future Outlook: What are well-informed industry analysts predicting for 1617’s future growth? Take a look at our free research report of analyst consensus for 1617’s outlook.
Valuation: What is 1617 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 1617 is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 1617? 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.
