Why I Like BBMG Corporation (HKG:2009)

In this article:

Attractive stocks have exceptional fundamentals. In the case of BBMG Corporation (HKG:2009), there's is a company with a great track record of performance, trading at a discount. 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 BBMG here.

Undervalued with proven track record

2009 delivered a bottom-line expansion of 78% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did 2009 outperformed its past performance, its growth also exceeded the Basic Materials industry expansion, which generated a 68% earnings growth. This is an optimistic signal for the future. 2009's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of 2009's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the basic materials industry, 2009 is also trading below its peers, relative to earnings generated. This further reaffirms that 2009 is potentially undervalued.

SEHK:2009 Income Statement, August 5th 2019
SEHK:2009 Income Statement, August 5th 2019

Next Steps:

For BBMG, I've put together three pertinent aspects you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for 2009’s future growth? Take a look at our free research report of analyst consensus for 2009’s outlook.

  2. Financial Health: Are 2009’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 2009? 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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