Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Shimao Property Holdings Limited (HKG:813) due to its excellent fundamentals in more than one area. 813 has a strong history of performance and a excellent growth outlook not yet factored into the price. 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 Shimao Property Holdings here.
High growth potential, good value and pays a dividend
813 is an attractive stock for growth-seeking investors, with an expected earnings growth of 21% in the upcoming year. This growth in the bottom-line is bolstered by an impressive top-line expansion of 67% over the same period, which is a sustainable driver of high-quality earnings, as opposed to pure cost-cutting activities. Over the past year, 813 has grown its earnings by 13%, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, 813 also outperformed its industry, which delivered a growth of -0.5%. This is an notable feat for the company.
813 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 813's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the market, 813 is also trading below other listed companies on the HK stock exchange, relative to earnings generated. This supports the theory that 813 is potentially underpriced.
For Shimao Property Holdings, there are three pertinent aspects you should further research:
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Dividend Income vs Capital Gains: Does 813 return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from 813 as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 813? 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.