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Should Luk Fook Holdings (International) Limited (HKG:590) Be Your Next Stock Pick?

Simply Wall St

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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Luk Fook Holdings (International) Limited (HKG:590), it is a notable dividend payer that has been able to sustain great financial health over the past. In the following section, I expand a bit more 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 Luk Fook Holdings (International) here.

Adequate balance sheet average dividend payer

590's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. 590’s debt-to-equity ratio stands at 18%, which means its debt level is acceptable. This implies that 590 has a healthy balance between taking advantage of low cost debt funding as well as sufficient financial flexibility without succumbing to the strict terms of debt.

SEHK:590 Historical Debt, March 28th 2019

For those seeking income streams from their portfolio, 590 is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 4.2%.

SEHK:590 Historical Dividend Yield, March 28th 2019

Next Steps:

For Luk Fook Holdings (International), I've put together three fundamental aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for 590’s future growth? Take a look at our free research report of analyst consensus for 590’s outlook.
  2. Historical Performance: What has 590'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.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 590? 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 editorial-team@simplywallst.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.