How China Isotope & Radiation Corporation (HKG:1763) Could Add Value To Your Portfolio

China Isotope & Radiation Corporation (HKG:1763) 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 1763, it is a company with impressive financial health as well as an optimistic growth outlook. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, read the full report on China Isotope & Radiation here.

Excellent balance sheet with reasonable growth potential

1763’s outstanding revenue growth of 53% forecasted for the near future is certainly eye-catching for investors on the hunt for growth, bolstered by its impressive cash-generating ability, as analysts predict its operating cash flows will more than double over the same time period. This suggests that 1763's revenue is made up of high-quality cash from 1763's day-to-day business as opposed to one-off income. 1763'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 implies that 1763 manages its cash and cost levels well, which is a key determinant of the company’s health. 1763 seems to have put its debt to good use, generating operating cash levels of 1.84x 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.

SEHK:1763 Past and Future Earnings, September 16th 2019
SEHK:1763 Past and Future Earnings, September 16th 2019

Next Steps:

For China Isotope & Radiation, I've put together three pertinent factors you should further examine:

  1. Historical Performance: What has 1763's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  2. Valuation: What is 1763 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 1763 is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 1763? 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.