Yahoo Finance What Makes Geely Automobile Holdings Limited (HKG:175) An Attractive Investment?
Geely Automobile Holdings Limited (HKG:175) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of 175, it is a financially-healthy company with a great history and an optimistic growth outlook. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, read the full report on Geely Automobile Holdings here.
Outstanding track record with flawless balance sheet and pays a dividend
175 is expected to churn out cash in the short term, with its operating cash flow predicted to expand at a triple-digit growth rate. This underlies the notable 33.1% return on equity over the next few years leading up to 2021. In the previous year, 175 has ramped up its bottom line by 71.7%, with its latest earnings level surpassing its average level over the last five years. This illustrates a strong track record, leading to a satisfying return on equity of 33.2%. which paints a buoyant picture for the company.
175’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. 175’s has produced operating cash levels of 2.89x total debt over the past year, which implies that 175’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Next Steps:
For Geely Automobile Holdings, there are three essential factors you should look at:
Valuation: What is 175 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 175 is currently mispriced by the market.
Dividend Income vs Capital Gains: Does 175 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 175 as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 175? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
