A Holistic Look At Best World International Limited (SGX:CGN)


Attractive stocks have exceptional fundamentals. In the case of Best World International Limited (SGX:CGN), there’s is a financially-healthy company with an impressive track record and a buoyant growth outlook. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Best World International here.

Exceptional growth potential with solid track record

CGN’s outstanding revenue growth of 77% forecasted for the near future is certainly eye-catching for investors on the hunt for growth. This underlies the notable 35% return on equity over the next few years leading up to 2021. Over the past few years, CGN has demonstrated a proven ability to generate robust returns of 44% Unsurprisingly, CGN surpassed the Personal Products industry return of 16%, which gives us more confidence of the company’s capacity to drive earnings going forward.

SGX:CGN Future Profit November 17th 18

CGN’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that CGN has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. CGN’s has produced operating cash levels of 44.76x total debt over the past year, which implies that CGN’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

SGX:CGN Historical Debt November 17th 18

Next Steps:

For Best World International, there are three fundamental factors you should further examine:

  1. Valuation: What is CGN 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 CGN is currently mispriced by the market.
  2. Dividend Income vs Capital Gains: Does CGN 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 CGN as an investment.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CGN? 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.

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