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As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Beijing Tong Ren Tang Chinese Medicine Company Limited (HKG:3613), it is a financially-sound company with a strong history and a excellent growth outlook. 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 Beijing Tong Ren Tang Chinese Medicine here.
Flawless balance sheet with proven track record
Over the past year, 3613 has grown its earnings by 19%, with its most recent figure exceeding its annual average over the past five years. Not only did 3613 outperformed its past performance, its growth also exceeded the Pharmaceuticals industry expansion, which generated a 17% earnings growth. This paints a buoyant picture for the company.
3613's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that 3613 manages its cash and cost levels well, which is a crucial insight into the health of the company. 3613 appears to have made good use of debt, producing operating cash levels of 474x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For Beijing Tong Ren Tang Chinese Medicine, I've put together three pertinent factors you should further research:
- Valuation: What is 3613 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 3613 is currently mispriced by the market.
- Dividend Income vs Capital Gains: Does 3613 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 3613 as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 3613? 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.