These Fundamentals Make Churchill China plc (LON:CHH) Truly Worth Looking At
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I've been keeping an eye on Churchill China plc (LON:CHH) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe CHH has a lot to offer. Basically, it is a company with great financial health as well as a an impressive track record of performance. 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, take a look at the report on Churchill China here.
Flawless balance sheet with proven track record
CHH has a strong track record of performance. In the previous year, CHH delivered an impressive double-digit return of 13% Not surprisingly, CHH outperformed its industry which returned 10%, giving us more conviction of the company's capacity to drive bottom-line growth going forward. CHH is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. CHH currently has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.
Next Steps:
For Churchill China, I've put together three fundamental aspects you should further research:
Future Outlook: What are well-informed industry analysts predicting for CHH’s future growth? Take a look at our free research report of analyst consensus for CHH’s outlook.
Valuation: What is CHH 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 CHH is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CHH? 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.
