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I've been keeping an eye on CCID Consulting Company Limited (HKG:8235) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe 8235 has a lot to offer. Basically, it is a financially-sound company with a a great history of performance, trading at a great value. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on CCID Consulting here.

Flawless balance sheet and undervalued

In the previous year, 8235 has ramped up its bottom line by 76%, with its latest earnings level surpassing its average level over the last five years. In addition to beating its historical values, 8235 also outperformed its industry, which delivered a growth of 26%. This is an notable feat for the company. 8235 is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that 8235 has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. Looking at 8235's capital structure, the company has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. 8235 has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.

8235 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 8235'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, 8235's share price is trading below the group's average. This bolsters the proposition that 8235's price is currently discounted.

Next Steps:

For CCID Consulting, I've put together three fundamental factors you should further examine:

1. Future Outlook: What are well-informed industry analysts predicting for 8235’s future growth? Take a look at our free research report of analyst consensus for 8235’s outlook.

2. Dividend Income vs Capital Gains: Does 8235 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 8235 as an investment.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 8235? 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.