Penyao Environmental Protection (SZSE:300664) - Share price, News & Analysis

Q: What is the Fair Price of 300664 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

300664 (CN¥5.5) is trading above our estimate of [[fair value]] (CN¥1.33)

300664 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	2/6
Financial Health	4/6
Dividends	2/6

300664 Stock Overview

Penyao Environmental Protection Co., Ltd.

Rewards

Price-To-Earnings ratio (12.6x) is below the CN market (36x)

Risk Analysis

Dividend of 1.18% is not well covered by earnings

Penyao Environmental Protection Competitors

Shenzhen Ecobeauty

SZSE:000010

CN¥3.7b

Fujian Haixia Environmental Protection GroupLtd

SHSE:603817

CN¥3.6b

Sinoma Energy Conservation

SHSE:603126

CN¥4.3b

Guangdong Liantai Environmental ProtectionLtd

SHSE:603797

CN¥3.4b

Price History & Performance

Summary of all time highs, changes and price drops for Penyao Environmental Protection
Historical stock prices
Current Share Price	CN¥5.50
52 Week High	CN¥7.50
52 Week Low	CN¥4.94
Beta	0.24
1 Month Change	-4.68%
3 Month Change	2.61%
1 Year Change	-18.64%
3 Year Change	-39.78%
5 Year Change	n/a
Change since IPO	-35.50%

Shareholder Returns

	300664	CN Commercial Services	CN Market
7D	2.6%	2.5%	1.3%
1Y	-18.6%	-8.7%	-7.2%

Return vs Industry: 300664 underperformed the CN Commercial Services industry which returned -8.7% over the past year.

Return vs Market: 300664 underperformed the CN Market which returned -7.2% over the past year.

Price Volatility

Is 300664's price volatile compared to industry and market?
300664 volatility
300664 Average Weekly Movement	3.7%
Commercial Services Industry Average Movement	5.5%
Market Average Movement	6.0%
10% most volatile stocks in CN Market	9.2%
10% least volatile stocks in CN Market	3.8%

Stable Share Price: 300664 is less volatile than 75% of CN stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 300664's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1984	1,283	n/a	https://www.penyao.com.cn

Penyao Environmental Protection Co., Ltd. engages in the environmental protection equipment business in China. It manufactures and sells sewage treatment, water purification, environmental protection, and sludge treatment and disposal equipment. The company was founded in 1984 and is headquartered in Yixing, China.

Penyao Environmental Protection Fundamentals Summary

How do Penyao Environmental Protection's earnings and revenue compare to its market cap?
300664 fundamental statistics
Market Cap	CN¥3.87b
Earnings (TTM)	CN¥309.75m
Revenue (TTM)	CN¥2.12b

12.6x

P/E Ratio

1.8x

P/S Ratio

Is 300664 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
300664 income statement (TTM)
Revenue	CN¥2.12b
Cost of Revenue	CN¥1.45b
Gross Profit	CN¥670.14m
Other Expenses	CN¥360.39m
Earnings	CN¥309.75m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.44
Gross Margin	31.57%
Net Profit Margin	14.59%
Debt/Equity Ratio	40.2%

How did 300664 perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

15%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 300664 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 300664?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 300664. This is calculated by dividing 300664's market cap by their current preferred multiple.
What is 300664's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥3.87b

300664 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	2.4x
Enterprise Value/EBITDA	10.3x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 300664's PE Ratio compare to its peers?

300664 PE Ratio vs Peers

The above table shows the PE ratio for 300664 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	55.1x
000010 Shenzhen Ecobeauty	156.7x	n/a	CN¥3.7b
603817 Fujian Haixia Environmental Protection GroupLtd	23.6x	n/a	CN¥3.6b
603126 Sinoma Energy Conservation	29.6x	n/a	CN¥4.3b
603797 Guangdong Liantai Environmental ProtectionLtd	10.7x	n/a	CN¥3.4b
300664 Penyao Environmental Protection	12.6x	n/a	CN¥3.9b

Price-To-Earnings vs Peers: 300664 is good value based on its Price-To-Earnings Ratio (12.6x) compared to the peer average (55.1x).

Price to Earnings Ratio vs Industry

How does 300664's PE Ratio compare vs other companies in the CN Commercial Services Industry?

Price-To-Earnings vs Industry: 300664 is good value based on its Price-To-Earnings Ratio (12.6x) compared to the CN Commercial Services industry average (30.9x)

Price to Earnings Ratio vs Fair Ratio

What is 300664'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.

300664 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12.6x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 300664's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 300664 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 300664 (CN¥5.5) is trading above our estimate of fair value (CN¥1.33)

Significantly Below Fair Value: 300664 is trading above our estimate of fair value.

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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Future Growth

How is Penyao Environmental Protection forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

26.3%

Forecasted Commercial Services industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Penyao Environmental Protection has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Examine Penyao Environmental Protection's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.

Past Performance

How has Penyao Environmental Protection performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

17.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 300664 has high quality earnings.

Growing Profit Margin: 300664's current net profit margins (14.6%) are lower than last year (18.1%).

Past Earnings Growth Analysis

Earnings Trend: 300664's earnings have grown by 17.3% per year over the past 5 years.

Accelerating Growth: 300664's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 300664 had negative earnings growth (-21.8%) over the past year, making it difficult to compare to the Commercial Services industry average (-11.6%).

Return on Equity

High ROE: 300664's Return on Equity (7.8%) is considered low.

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Financial Health

How is Penyao Environmental Protection's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 300664's short term assets (CN¥2.7B) exceed its short term liabilities (CN¥2.1B).

Long Term Liabilities: 300664's short term assets (CN¥2.7B) exceed its long term liabilities (CN¥1.0B).

Debt to Equity History and Analysis

Debt Level: 300664's net debt to equity ratio (27.2%) is considered satisfactory.

Reducing Debt: 300664's debt to equity ratio has increased from 26.2% to 40.2% over the past 5 years.

Debt Coverage: 300664's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 300664's interest payments on its debt are well covered by EBIT (9.8x coverage).

Balance Sheet

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Dividend

What is Penyao Environmental Protection current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

1.18%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 300664's dividend (1.18%) is higher than the bottom 25% of dividend payers in the CN market (0.44%).

High Dividend: 300664's dividend (1.18%) is low compared to the top 25% of dividend payers in the CN market (1.87%).

Stability and Growth of Payments

Stable Dividend: 300664 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 300664's dividend payments have increased, but the company has only paid a dividend for 4 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (14.7%), 300664's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: 300664 is paying a dividend but the company has no free cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

CEO

Penyao Environmental Protection has no CEO, or we have no data on them.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/17 00:00
End of Day Share Price	2022/08/17 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31