I've been keeping an eye on Jiangsu Innovative Ecological New Materials Limited (HKG:2116) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe 2116 has a lot to offer. Basically, it is a company with great financial health as well as a an impressive history of performance. Below is a brief commentary 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 Jiangsu Innovative Ecological New Materials here.
Flawless balance sheet with proven track record
Over the past year, 2116 has grown its earnings by 37%, with its most recent figure exceeding its annual average over the past five years. Not only did 2116 outperformed its past performance, its growth also surpassed the Chemicals industry expansion, which generated a 18% earnings growth. This is what investors like to see! 2116'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 implies that 2116 manages its cash and cost levels well, which is a crucial insight into the health of the company. Looking at 2116's capital structure, the company has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. 2116 has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.
For Jiangsu Innovative Ecological New Materials, there are three important aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for 2116’s future growth? Take a look at our free research report of analyst consensus for 2116’s outlook.
- Valuation: What is 2116 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 2116 is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 2116? 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 firstname.lastname@example.org. 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.