Shanghai Zhenhua Heavy Industries Co., Ltd.

SHSE:900947 Stock Report

Market Cap: US$2.3b

Shanghai Zhenhua Heavy Industries Valuation

Is 900947 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 900947 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 900947 ($0.24) is trading below our estimate of fair value ($1.58)

Significantly Below Fair Value: 900947 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 900947?

Key metric: As 900947 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 900947. This is calculated by dividing 900947's market cap by their current earnings.
What is 900947's PE Ratio?
PE Ratio32.9x
EarningsCN¥633.22m
Market CapCN¥16.67b

Price to Earnings Ratio vs Peers

How does 900947's PE Ratio compare to its peers?

The above table shows the PE ratio for 900947 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10.9x
000680 Shantui Construction Machinery
16.2x21.3%CN¥15.8b
600761 Anhui HeliLtd
10.8x17.5%CN¥15.2b
601717 Zhengzhou Coal Mining Machinery Group
5.7x11.6%CN¥21.1b
603298 Hangcha Group
11.1x12.2%CN¥22.0b
900947 Shanghai Zhenhua Heavy Industries
32.9x36.5%US$16.7b

Price-To-Earnings vs Peers: 900947 is expensive based on its Price-To-Earnings Ratio (32.9x) compared to the peer average (10.9x).

Price to Earnings Ratio vs Industry

How does 900947's PE Ratio compare vs other companies in the CN Machinery Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
002021 Zoje Resources Investment
4.6xn/aUS$396.87m
No more companies available in this PE range
900947 32.9xIndustry Avg. 35.0xNo. of Companies54PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 900947 is good value based on its Price-To-Earnings Ratio (32.9x) compared to the CN Machinery industry average (35x).

Price to Earnings Ratio vs Fair Ratio

What is 900947's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

900947 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio32.9x
Fair PE Ratio30.6x

Price-To-Earnings vs Fair Ratio: 900947 is expensive based on its Price-To-Earnings Ratio (32.9x) compared to the estimated Fair Price-To-Earnings Ratio (30.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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