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Regal International Airport Group Company Limited (HKG:357) Has Attractive Fundamentals

Simply Wall St

Attractive stocks have exceptional fundamentals. In the case of Regal International Airport Group Company Limited (HKG:357), there's is a company with an impressive track record of performance, trading at a great value. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, read the full report on Regal International Airport Group here.

Undervalued with solid track record

Over the past year, 357 has grown its earnings by 28%, with its most recent figure exceeding its annual average over the past five years. Not only did 357 outperformed its past performance, its growth also exceeded the Infrastructure industry expansion, which generated a 7.3% earnings growth. This paints a buoyant picture for the company. 357 is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. Investors have the opportunity to buy into the stock to reap capital gains, if 357's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of its peers with similar levels of earnings, 357's share price is trading below the group's average. This supports the theory that 357 is potentially underpriced.

SEHK:357 Income Statement, August 2nd 2019

Next Steps:

For Regal International Airport Group, I've put together three pertinent aspects you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for 357’s future growth? Take a look at our free research report of analyst consensus for 357’s outlook.
  2. Financial Health: Are 357’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 357? 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.