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Is Swire Pacific Limited (HKG:19) Potentially Underrated?

Simply Wall St

Swire Pacific Limited (HKG:19) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of 19, it is a highly-regarded 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 Swire Pacific here.

Adequate balance sheet average dividend payer

19'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. 19’s debt-to-equity ratio stands at 21%, which means its debt level is acceptable. This implies that 19 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:19 Historical Debt, September 30th 2019
SEHK:19 Historical Debt, September 30th 2019

For those seeking income streams from their portfolio, 19 is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 4.9%.

SEHK:19 Historical Dividend Yield, September 30th 2019
SEHK:19 Historical Dividend Yield, September 30th 2019

Next Steps:

For Swire Pacific, I've put together three key aspects you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for 19’s future growth? Take a look at our free research report of analyst consensus for 19’s outlook.

  2. Historical Performance: What has 19'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 19? 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.