I like China Mobile for a lot of reasons.  Their P/E ratio is low at around 11.  They are also a large cap stock at $210 billion.  They are also in a space that has incredible growth potential.  The number of smart phone users in China just exceeded that of the US.  This trend will continue, which means a massively growing market for China Mobile.  I think the best stocks to buy are ones that do business in China.  This one is even better!

Massive Growth of the Chinese Consumer Market

The economy in China is growing at a stellar pace.  The number of middle class and wealthy are also growing.  This will mean that they will need more infrastructure to meet the wireless demand in the coming years.  China Mobile is well positioned to piggy back on this growth.

China Mobile is Leveraging Growth

They have a 5 year EPS growth rate of 17%, which by many measures makes them a growth stock.  Their 5 year revenue growth rate is 15%.  Those are really good growth rates for a company this size.

They also have a nice dividend yield of 3.9%.  That’s not a bad cherry on top.  If you are just looking for strong, high yield stocks, this would fit the bill.  But you also have the massive growth prospects here.

Although their total liabilities jumped last year, their debt to equity ratio is still quite low at .5.  The average for the communications services industry is 2.10.

Political Risks

There is political risks involved since the government has such a tight control on the economy and the companies that operate within China.  But I think the potential market in China far outweighs the current political risks involved.

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Financial Analysis

I usually use Google Finance and NASDAQ for my data and stock screens.  I also use the financial analysis software put out by Sageworks Inc.

Disclaimer

Remember that investing is a very risky activity.  You can lose all or most of your initial investments.  Consult a licensed financial advisor before implementing any investment strategy.  Historical performance is no guarantee of future performance.  No one can accurately predict the future, at least not consistently over time.  The writer of this article and owner of this website do not own any of the stocks mentioned in this post.