Yahoo Finance Why We Think NagaCorp Ltd. (HKG:3918) Could Be Worth Looking At
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NagaCorp Ltd. (HKG:3918) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of 3918, it is a financially-sound company with a great history and a buoyant growth outlook. 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 NagaCorp here.
Excellent balance sheet with reasonable growth potential and pays a dividend
3918’s outstanding revenue growth of 57% forecasted for the near future is certainly eye-catching for investors on the hunt for growth. This underlies the notable 24% return on equity over the next few years leading up to 2022. Over the past year, 3918 has grown its earnings by 36%, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, 3918 also outperformed its industry, which delivered a growth of 22%. This is what investors like to see!
3918’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 suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. 3918 appears to have made good use of debt, producing operating cash levels of 1.26x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Next Steps:
For NagaCorp, I’ve put together three important factors you should look at:
Valuation: What is 3918 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 3918 is currently mispriced by the market.
Dividend Income vs Capital Gains: Does 3918 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 3918 as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 3918? 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.
