Attractive stocks have exceptional fundamentals. In the case of Kingboard Laminates Holdings Limited (HKG:1888), there's is a financially-healthy company with a strong track record superior dividend payments, trading at a great value. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Kingboard Laminates Holdings here.
Flawless balance sheet established dividend payer
1888'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 1888 manages its cash and cost levels well, which is an important determinant of the company’s health. 1888 seems to have put its debt to good use, generating operating cash levels of 0.6x 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. 1888 is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of 1888'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, 1888's share price is trading below the group's average. This supports the theory that 1888 is potentially underpriced.
1888’s reputation for being one of the best dividend payers in the market is supported by the fact that it has been steadily growing its dividend payments over the past ten years and currently is one of the top yielding companies on the markets, at 8.0%.
For Kingboard Laminates Holdings, I've put together three essential aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for 1888’s future growth? Take a look at our free research report of analyst consensus for 1888’s outlook.
- Historical Performance: What has 1888'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 1888? 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 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.