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I've been keeping an eye on Natural Food International Holding Limited (HKG:1837) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe 1837 has a lot to offer. Basically, it is a company with robust financial health as well as a buoyant future outlook. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on Natural Food International Holding here.
Exceptional growth potential with excellent balance sheet
1837 is an attractive stock for growth-seeking investors, with an expected earnings growth of 51% in the upcoming year. The optimistic bottom-line growth is supported by an outstanding revenue growth of 56% over the same time period, which indicates that earnings is driven by top-line activity rather than purely unsustainable cost-reduction initiatives. 1837's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that 1837 has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. 1837's has produced operating cash levels of 1.91x total debt over the past year, which implies that 1837's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For Natural Food International Holding, I've put together three pertinent aspects you should further examine:
- Historical Performance: What has 1837'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.
- Valuation: What is 1837 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 1837 is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 1837? 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.