Wuxi Huadong Heavy Machinery Valuation

Is 002685 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-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 002685 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 002685 (CN¥6.8) is trading below our estimate of fair value (CN¥36.87)

Significantly Below Fair Value: 002685 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 002685?

Key metric: As 002685 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 002685. This is calculated by dividing 002685's market cap by their current revenue.
What is 002685's PS Ratio?
PS Ratio	6.3x
Sales	CN¥1.09b
Market Cap	CN¥6.85b

002685 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	5.9x
Enterprise Value/EBITDA	-17x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 002685's PS Ratio compare to its peers?

The above table shows the PS ratio for 002685 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	8.9x
300266 Xingyuan Environment Technology	6.7x	n/a	CN¥4.9b
300499 Guangzhou Goaland Energy Conservation Tech	9.6x	34.9%	CN¥5.1b
300056 Xiamen Zhongchuang Environmental Technology	12.4x	n/a	CN¥5.7b
603135 Zhongzhong Science & Technology (Tianjin)	7.1x	n/a	CN¥6.0b
002685 Wuxi Huadong Heavy Machinery	6.3x	n/a	CN¥6.9b

Price-To-Sales vs Peers: 002685 is good value based on its Price-To-Sales Ratio (6.3x) compared to the peer average (8.9x).

Price to Sales Ratio vs Industry

How does 002685's PS Ratio compare vs other companies in the CN Machinery Industry?

6 Companies	Price / Sales	Estimated Growth	Market Cap
000039 China International Marine Containers (Group)	0.3x	5.0%	US$4.76b
000951 Sinotruk Jinan TruckLtd	0.4x	14.6%	US$2.65b
600686 Xiamen King Long Motor Group	0.4x	n/a	US$1.19b
000404 Changhong Huayi Compressor	0.4x	4.8%	US$687.25m

6 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: 002685 is expensive based on its Price-To-Sales Ratio (6.3x) compared to the CN Machinery industry average (3.1x).

Price to Sales Ratio vs Fair Ratio

What is 002685'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.

002685 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	6.3x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 002685'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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