Should You Consider Telecom Digital Holdings Limited (HKG:6033)?

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Telecom Digital Holdings Limited (HKG:6033) 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 6033, it is a company with great financial health as well as a a great history of performance. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on Telecom Digital Holdings here.

Outstanding track record with adequate balance sheet

Over the past year, 6033 has grown its earnings by 24%, with its most recent figure exceeding its annual average over the past five years. This illustrates a strong track record, leading to a satisfying return on equity of 39%. which is an optimistic signal for the future. 6033's has produced operating cash levels of 0.92x total debt over the past year, which implies that 6033's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. Also, 6033’s earnings amply cover its interest expense. Paying interest on time and in full can help the company get favourable debt terms in the future, leading to lower cost of debt and helps 6033 expand.

SEHK:6033 Income Statement, June 13th 2019
SEHK:6033 Income Statement, June 13th 2019

Next Steps:

For Telecom Digital Holdings, I've put together three fundamental factors you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for 6033’s future growth? Take a look at our free research report of analyst consensus for 6033’s outlook.

  2. Valuation: What is 6033 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 6033 is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 6033? 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.