Yahoo Finance A Look At China Life Insurance Company Limited’s (HKG:2628) Exceptional Fundamentals
Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on China Life Insurance Company Limited (HKG:2628) due to its excellent fundamentals in more than one area. 2628 is a financially-healthy , dividend-paying company with a a strong track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on China Life Insurance here.
Excellent balance sheet with proven track record and pays a dividend
In the previous year, 2628 has ramped up its bottom line by 99.82%, with its latest earnings level surpassing its average level over the last five years. Not only did 2628 outperformed its past performance, its growth also surpassed the Insurance industry expansion, which generated a 27.98% earnings growth. This paints a buoyant picture for the company. 2628’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that 2628 manages its cash and cost levels well, which is a key determinant of the company’s health. 2628 appears to have made good use of debt, producing operating cash levels of 1.07x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
2628 is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
Next Steps:
For China Life Insurance, there are three key aspects you should look at:
Future Outlook: What are well-informed industry analysts predicting for 2628’s future growth? Take a look at our free research report of analyst consensus for 2628’s outlook.
Valuation: What is 2628 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 2628 is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 2628? 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 pass 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.
