Looking At Goldlion Holdings Limited (HKG:533) From All Angles

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Attractive stocks have exceptional fundamentals. In the case of Goldlion Holdings Limited (HKG:533), there's is a financially-robust company with a a strong history of performance, trading at a discount. 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, take a look at the report on Goldlion Holdings here.

Flawless balance sheet, good value and pays a dividend

Over the past year, 533 has grown its earnings by 17%, with its most recent figure exceeding its annual average over the past five years. Not only did 533 outperformed its past performance, its growth also surpassed the Specialty Retail industry expansion, which generated a 12% earnings growth. This is what investors like to see! 533'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 533 manages its cash and cost levels well, which is a crucial insight into the health of the company. 533 currently 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. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.

SEHK:533 Income Statement, June 25th 2019
SEHK:533 Income Statement, June 25th 2019

533's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. Investors have the opportunity to buy into the stock to reap capital gains, if 533's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the specialty retail industry, 533 is also trading below its peers, relative to earnings generated. This bolsters the proposition that 533's price is currently discounted.

SEHK:533 Intrinsic value, June 25th 2019
SEHK:533 Intrinsic value, June 25th 2019

Next Steps:

For Goldlion Holdings, there are three key factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for 533’s future growth? Take a look at our free research report of analyst consensus for 533’s outlook.

  2. Dividend Income vs Capital Gains: Does 533 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 533 as an investment.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 533? 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.

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