Want to participate in a short research study? Help us shape the future of investment tools and receive a $ 20 prize!I am supervising Jinhui Shipping and Transportation Limited (OB: JIN) because I am attracted by its fundamentals. Considering society as a whole, as a potential equity investment, I think JIN has a lot to offer. Basically, this is a financially healthy company with optimistic growth prospects that has not yet integrated the stock price. In the next section, I develop a little more on these key aspects. If you want to understand beyond my general comment, read the full text. report here on Jinhui Shipping and Transportation.

Very undervalued with reasonable growth potential

One of the reasons why investors are attracted to JIN is its earnings growth potential in the near future of 50%, boosted by its excellent ability to generate cash, while analysts predict that its cash flow operational costs will more than double during the same period. It is a sustainable factor of high quality revenue, as opposed to cost reduction activities. JIN's shares are now trading at a discount to its real value based on discounted cash flows, indicating a relatively pessimistic market sentiment. Depending on my intrinsic share value, which stems from analysts' consensus forecasts of JIN's earnings, investors now have the opportunity to buy shares to realize capital gains. Compared to the rest of the shipping industry, JIN is also trading below its competitors, compared to the profits generated. This confirms the theory that JIN is potentially undervalued.

OB: Past and Future Results of JIN, February 22, 2019More

JIN's strong financial strength means that all of its future liability payments can be covered by its current cash and short-term investments. This suggests prudent control of costs and liquidity by management, which is a crucial insight into the health of the company. The debt ratio of JIN is 34%, which means that its debt level is acceptable. This implies that JIN presents a healthy balance between operating low-cost debt financing and sufficient financial flexibility without succumbing to the strict conditions of the debt.

OB: Historical Debt of JIN, February 22, 2019More

Next steps:

For Jinhui Shipping and Transportation, you need to consider three key factors:

  1. Historical performance: How have JIN returns been in the past? Go into more detail in the background analysis and take a look at the free visual representations of our analysis to clarify more.
  2. Dividend income vs. capital gains: Does JIN generate gains for shareholders by reinvesting and increasing profits, or does it redistribute a decent portion of profits in the form of dividends? Our visualization of historical dividend yield Quickly tells you what you can expect from JIN as an investment.
  3. Other attractive alternatives : Are there any other well balanced actions you could hold instead of JIN? To explore our interactive list of high potential actions to get an idea of ​​what you are missing, you may be missing!

Our goal is to provide you with a long-term research analysis based on fundamental data. Note that our analysis may not take into account the latest announcements of price sensitive companies or qualitative information. If you find any error that needs to be corrected, please contact the publisher at the address next: editorial-team@simplywallst.com. This article from Simply Wall St is of a general nature. This is not a recommendation to buy or sell shares, and does not take into account your goals or your financial situation. Simply Wall St has no position on the actions mentioned. Thanks for the reading.