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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Crystal International Group Limited (HKG:2232) due to its excellent fundamentals in more than one area. 2232 is a company that has been able to sustain great financial health, trading at an attractive share price. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on Crystal International Group here.

Undervalued with adequate balance sheet

2232's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that 2232 has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. 2232 seems to have put its debt to good use, generating operating cash levels of 0.53x 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. 2232 is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. Investors have the opportunity to buy into the stock to reap capital gains, if 2232's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of its peers with similar levels of earnings, 2232's share price is trading below the group's average. This supports the theory that 2232 is potentially underpriced.

Next Steps:

For Crystal International Group, there are three essential aspects you should look at:

1. Future Outlook: What are well-informed industry analysts predicting for 2232’s future growth? Take a look at our free research report of analyst consensus for 2232’s outlook.

2. Historical Performance: What has 2232'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.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 2232? 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.