As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Clifford Modern Living Holdings Limited (HKG:3686), it is a company with great financial health as well as a a strong history of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Clifford Modern Living Holdings here.
Flawless balance sheet with solid track record
Over the past year, 3686 has grown its earnings by 29%, with its most recent figure exceeding its annual average over the past five years. This strong performance generated a robust double-digit return on equity of 22%, which is an notable feat for the company. 3686'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 3686 manages its cash and cost levels well, which is a key determinant of the company’s health. Looking at 3686's capital structure, the company has no debt on its balance sheet. This means it is running its business only on equity capital funding, 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.
For Clifford Modern Living Holdings, I've put together three important factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for 3686’s future growth? Take a look at our free research report of analyst consensus for 3686’s outlook.
- Valuation: What is 3686 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 3686 is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 3686? 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 email@example.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.