Why These Fundamentals Make NagaCorp Ltd (HKG:3918) Truly A Standout Investment
I’ve been keeping an eye on NagaCorp Ltd (HKG:3918) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe 3918 has a lot to offer. Basically, it is a financially-healthy , dividend-paying company with a an impressive history of performance. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, take a look at the report on NagaCorp here.
Excellent balance sheet with proven track record and pays a dividend
In the previous year, 3918 has ramped up its bottom line by 35.82%, with its latest earnings level surpassing its average level over the last five years. Not only did 3918 outperformed its past performance, its growth also exceeded the Hospitality industry expansion, which generated a 17.56% earnings growth. This is an optimistic signal for the future. 3918 is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that 3918 has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. 3918 seems to have put its debt to good use, generating operating cash levels of 1.11x 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.
Income investors would also be happy to know that 3918 is a great dividend company, with a current yield standing at 3.30%. 3918 has also been regularly increasing its dividend payments to shareholders over the past decade.
Next Steps:
For NagaCorp, there are three fundamental factors you should look at:
Future Outlook: What are well-informed industry analysts predicting for 3918’s future growth? Take a look at our free research report of analyst consensus for 3918’s outlook.
Valuation: What is 3918 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 3918 is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 3918? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
