Wuxi Xuelang Environmental Technology Co., Ltd.

SZSE:300385 Stock Report

Market Cap: CN¥1.8b

Wuxi Xuelang Environmental Technology Valuation

Is 300385 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 300385 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 300385 (CN¥5.47) is trading below our estimate of fair value (CN¥11.59)

Significantly Below Fair Value: 300385 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 300385?

Key metric: As 300385 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 300385. This is calculated by dividing 300385's market cap by their current revenue.
What is 300385's PS Ratio?
PS Ratio2.4x
SalesCN¥763.89m
Market CapCN¥1.82b

Price to Sales Ratio vs Peers

How does 300385's PS Ratio compare to its peers?

The above table shows the PS ratio for 300385 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average8.2x
301288 Qingyan Environmental Technology
19xn/aCN¥1.8b
600243 Qinghai Huading Industrial
7.1xn/aCN¥1.9b
603356 Xuancheng Valin Precision Technology
1.5xn/aCN¥1.9b
300097 Dalian Zhiyun Automation
5.1xn/aCN¥2.3b
300385 Wuxi Xuelang Environmental Technology
2.4xn/aCN¥1.8b

Price-To-Sales vs Peers: 300385 is good value based on its Price-To-Sales Ratio (2.4x) compared to the peer average (8.2x).


Price to Sales Ratio vs Industry

How does 300385's PS Ratio compare vs other companies in the CN Machinery Industry?

6 CompaniesPrice / SalesEstimated GrowthMarket Cap
000039 China International Marine Containers (Group)
0.3x5.0%US$4.72b
000951 Sinotruk Jinan TruckLtd
0.4x14.6%US$2.57b
600686 Xiamen King Long Motor Group
0.4xn/aUS$1.14b
000404 Changhong Huayi Compressor
0.4x4.8%US$670.10m
300385 2.4xIndustry Avg. 3.1xNo. of Companies55PS0246810+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 300385 is good value based on its Price-To-Sales Ratio (2.4x) compared to the CN Machinery industry average (3.1x).


Price to Sales Ratio vs Fair Ratio

What is 300385's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

300385 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.4x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 300385's Price-To-Sales Fair Ratio for valuation analysis.


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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