SINOMACH HEAVY EQUIPMENT GROUP CO.,LTD

XSSC:601399 Stock Report

Market Cap: CN¥22.9b

SINOMACH HEAVY EQUIPMENT GROUPLTD Valuation

Is 601399 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 601399 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 601399 (CN¥3.18) is trading below our estimate of fair value (CN¥7.56)

Significantly Below Fair Value: 601399 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 601399?

Key metric: As 601399 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 601399. This is calculated by dividing 601399's market cap by their current earnings.
What is 601399's PE Ratio?
PE Ratio46.3x
EarningsCN¥495.91m
Market CapCN¥22.94b

Price to Earnings Ratio vs Peers

How does 601399's PE Ratio compare to its peers?

The above table shows the PE ratio for 601399 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average45x
600582 Tiandi Science & TechnologyLtd
9.6x12.1%CN¥24.5b
601608 CITIC Heavy Industries
46.7xn/aCN¥18.7b
600765 AVIC Heavy Machinery
22.3x19.5%CN¥29.3b
301611 Suzhou Kematek
101.5x27.9%CN¥25.4b
601399 SINOMACH HEAVY EQUIPMENT GROUPLTD
46.3x24.2%CN¥22.9b

Price-To-Earnings vs Peers: 601399 is expensive based on its Price-To-Earnings Ratio (46.3x) compared to the peer average (45x).

Price to Earnings Ratio vs Industry

How does 601399's PE Ratio compare vs other companies in the CN Machinery Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
002021 Zoje Resources Investment
4.6xn/aUS$398.81m
No more companies available in this PE range
601399 46.3xIndustry Avg. 34.7xNo. of Companies54PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 601399 is expensive based on its Price-To-Earnings Ratio (46.3x) compared to the CN Machinery industry average (35x).

Price to Earnings Ratio vs Fair Ratio

What is 601399'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.

601399 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio46.3x
Fair PE Ratio25x

Price-To-Earnings vs Fair Ratio: 601399 is expensive based on its Price-To-Earnings Ratio (46.3x) compared to the estimated Fair Price-To-Earnings Ratio (25x).

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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