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Should You Be Holding CapitaLand Retail China Trust (SGX:AU8U)?

Simply Wall St

I've been keeping an eye on CapitaLand Retail China Trust (SGX:AU8U) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe AU8U has a lot to offer. Basically, it is a highly-regarded dividend-paying company with an impressive track record of performance, trading at a great value. Below is a brief commentary on these key aspects. For those interested in digging a bit deeper into my commentary, take a look at the report on CapitaLand Retail China Trust here.

Established dividend payer and good value

In the previous year, AU8U has ramped up its bottom line by 6.1%, with its latest earnings level surpassing its average level over the last five years. Not only did AU8U outperformed its past performance, its growth also surpassed the REITs industry expansion, which generated a -1.8% earnings growth. This is an optimistic signal for the future. AU8U's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of AU8U'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, AU8U's share price is trading below the group's average. This bolsters the proposition that AU8U's price is currently discounted.

SGX:AU8U Income Statement, September 10th 2019

Income investors would also be happy to know that AU8U is one of the highest dividend payers in the market, with current dividend yield standing at 6.6%. AU8U has also been regularly increasing its dividend payments to shareholders over the past decade.

SGX:AU8U Historical Dividend Yield, September 10th 2019

Next Steps:

For CapitaLand Retail China Trust, there are three important aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for AU8U’s future growth? Take a look at our free research report of analyst consensus for AU8U’s outlook.
  2. Financial Health: Are AU8U’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of AU8U? 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 editorial-team@simplywallst.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.