China Railway Construction Heavy Industry Corporation Limited

XSSC:688425 Stock Report

Market Cap: CN¥25.5b

China Railway Construction Heavy Industry Valuation

Is 688425 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 688425 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 688425 (CN¥4.79) is trading above our estimate of fair value (CN¥0.27)

Significantly Below Fair Value: 688425 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 688425?

Key metric: As 688425 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 688425. This is calculated by dividing 688425's market cap by their current earnings.
What is 688425's PE Ratio?
PE Ratio18.2x
EarningsCN¥1.41b
Market CapCN¥25.55b

Price to Earnings Ratio vs Peers

How does 688425's PE Ratio compare to its peers?

The above table shows the PE ratio for 688425 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average11.9x
000528 Guangxi Liugong Machinery
16.6x31.4%CN¥22.6b
603298 Hangcha Group
11x12.2%CN¥22.0b
000951 Sinotruk Jinan TruckLtd
14.2x16.7%CN¥19.3b
601717 Zhengzhou Coal Mining Machinery Group
5.8x11.6%CN¥21.4b
688425 China Railway Construction Heavy Industry
18.2x17.2%CN¥25.5b

Price-To-Earnings vs Peers: 688425 is expensive based on its Price-To-Earnings Ratio (18.2x) compared to the peer average (11.7x).

Price to Earnings Ratio vs Industry

How does 688425's PE Ratio compare vs other companies in the CN Machinery Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
002021 Zoje Resources Investment
4.6xn/aUS$398.30m
No more companies available in this PE range
688425 18.2xIndustry Avg. 34.4xNo. of Companies56PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 688425 is good value based on its Price-To-Earnings Ratio (18.2x) compared to the CN Machinery industry average (34.4x).

Price to Earnings Ratio vs Fair Ratio

What is 688425'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.

688425 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.2x
Fair PE Ratio21.7x

Price-To-Earnings vs Fair Ratio: 688425 is good value based on its Price-To-Earnings Ratio (18.2x) compared to the estimated Fair Price-To-Earnings Ratio (21.7x).

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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