Why Oriental University City Holdings (H.K.) Limited (HKG:8067) Is An Attractive Investment To Consider
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Attractive stocks have exceptional fundamentals. In the case of Oriental University City Holdings (H.K.) Limited (HKG:8067), there's is a financially-healthy company with a a great track record of performance, trading at a discount. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Oriental University City Holdings (H.K.) here.
Excellent balance sheet and good value
8067 delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. Not only did 8067 outperformed its past performance, its growth also surpassed the Real Estate industry expansion, which generated a 6.3% earnings growth. This is an notable feat for the company. 8067 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 a key determinant of the company’s health. 8067's has produced operating cash levels of 1.94x total debt over the past year, which implies that 8067's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
8067's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of 8067's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of its peers with similar levels of earnings, 8067's share price is trading below the group's average. This bolsters the proposition that 8067's price is currently discounted.
Next Steps:
For Oriental University City Holdings (H.K.), there are three important aspects you should further research:
Future Outlook: What are well-informed industry analysts predicting for 8067’s future growth? Take a look at our free research report of analyst consensus for 8067’s outlook.
Dividend Income vs Capital Gains: Does 8067 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 8067 as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 8067? 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.
