I've been keeping an eye on China Boqi Environmental (Holding) Co., Ltd. (HKG:2377) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe 2377 has a lot to offer. Basically, it is a financially-sound company with an impressive history superior dividend payments, trading at a great value. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on China Boqi Environmental (Holding) here.
Excellent balance sheet, good value and pays a dividend
2377's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that 2377 has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. 2377 seems to have put its debt to good use, generating operating cash levels of 1.15x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows. 2377's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of 2377's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of its peers with similar levels of earnings, 2377's share price is trading below the group's average. This further reaffirms that 2377 is potentially undervalued.
2377's high dividend payments make it one of the best dividend stocks on the market, and it has also been able to maintain it at a level in which net income is able to cover dividend payments.
For China Boqi Environmental (Holding), I've compiled three important factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for 2377’s future growth? Take a look at our free research report of analyst consensus for 2377’s outlook.
- Historical Performance: What has 2377'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.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 2377? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
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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.