I've been keeping an eye on PAX Global Technology Limited (HKG:327) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe 327 has a lot to offer. Basically, it is a financially-robust company with an impressive history of performance, trading at a great value. 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, read the full report on PAX Global Technology here.

Excellent balance sheet and good value

In the previous year, 327 has ramped up its bottom line by 47%, with its latest earnings level surpassing its average level over the last five years. Not only did 327 outperformed its past performance, its growth also exceeded the Electronic industry expansion, which generated a -13% earnings growth. This is an optimistic signal for the future. 327'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 indicates that 327 has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. 327's has produced operating cash levels of 82.21x total debt over the past year, which implies that 327's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

327's shares are now trading at a price below its true value based on its PE ratio of 6.61x, compared to the industry and wider stock market ratio, which means it is relatively cheaper than its peers.

Next Steps:

For PAX Global Technology, there are three essential aspects you should further examine:

1. Future Outlook: What are well-informed industry analysts predicting for 327’s future growth? Take a look at our free research report of analyst consensus for 327’s outlook.

2. Dividend Income vs Capital Gains: Does 327 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 327 as an investment.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 327? 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.