S Spotlight On Sinotruk (Hong Kong) Limited’s (HKG:3808) Fundamentals
Sinotruk (Hong Kong) Limited (HKG:3808) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of 3808, it is a financially-sound , dividend-paying company with a a strong track record 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, take a look at the report on Sinotruk (Hong Kong) here.
Flawless balance sheet with solid track record and pays a dividend
In the past couple of years, 3808 has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. In addition to beating its historical values, 3808 also outperformed its industry, which delivered a growth of 23.9%. This is what investors like to see! 3808’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 indicates that 3808 has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. 3808 seems to have put its debt to good use, generating operating cash levels of 1.28x 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 3808 is a great dividend company, with a current yield standing at 2.6%. 3808 has also been regularly increasing its dividend payments to shareholders over the past decade.
Next Steps:
For Sinotruk (Hong Kong), I’ve put together three fundamental factors you should further research:
Future Outlook: What are well-informed industry analysts predicting for 3808’s future growth? Take a look at our free research report of analyst consensus for 3808’s outlook.
Valuation: What is 3808 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 3808 is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 3808? 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.
