A Look At Yanzhou Coal Mining Company Limited’s (HKG:1171) Exceptional Fundamentals

Want to participate in a short research study? Help shape the future of investing tools and receive a $20 prize!

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Yanzhou Coal Mining Company Limited (HKG:1171) due to its excellent fundamentals in more than one area. 1171 is a financially-healthy company with a a strong history high-quality dividend payments, trading at a discount. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Yanzhou Coal Mining here.

Undervalued with excellent balance sheet and pays a dividend

1171 is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that 1171 has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. 1171’s has produced operating cash levels of 0.37x total debt over the past year, which implies that 1171’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. 1171’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts’ consensus forecast growth be correct. Also, relative to the rest of its peers with similar levels of earnings, 1171’s share price is trading below the group’s average. This bolsters the proposition that 1171’s price is currently discounted.

SEHK:1171 Intrinsic Value Export February 18th 19

For those seeking income streams from their portfolio, 1171 is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 7.6%, making it one of the best dividend companies in the market.

SEHK:1171 Historical Dividend Yield February 18th 19

Next Steps:

For Yanzhou Coal Mining, I’ve compiled three relevant factors you should look at:

1. Future Outlook: What are well-informed industry analysts predicting for 1171’s future growth? Take a look at our free research report of analyst consensus for 1171’s outlook.

2. Historical Performance: What has 1171’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 1171? 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. On rare occasion, data errors may occur. Thank you for reading.