DB:FSH

Stock Analysis Report

Fu Shou Yuan International Group

Executive Summary

Fu Shou Yuan International Group Limited, together with its subsidiaries, primarily provides burial and funeral services in the People’s Republic of China.

Rewards

Trading at 19.4% below its fair value

Earnings are forecast to grow 16.72% per year

Earnings have grown 18.5% per year over the past 5 years

Risk Analysis

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet with moderate growth potential.

Share Price & News

How has Fu Shou Yuan International Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FSH has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.5%

FSH

0.7%

DE Consumer Services

1.7%

DE Market


1 Year Return

15.3%

FSH

18.1%

DE Consumer Services

15.0%

DE Market

Return vs Industry: FSH underperformed the German Consumer Services industry which returned 18.1% over the past year.

Return vs Market: FSH matched the German Market which returned 15% over the past year.


Shareholder returns

FSHIndustryMarket
7 Day-2.5%0.7%1.7%
30 Day-2.5%6.0%0.8%
90 Day1.9%9.7%3.7%
1 Year16.7%15.3%20.0%18.1%18.5%15.0%
3 Year57.5%52.2%8.1%2.2%17.1%6.9%
5 Year131.6%119.4%-37.8%-53.3%24.3%7.3%

Price Volatility Vs. Market

How volatile is Fu Shou Yuan International Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Fu Shou Yuan International Group undervalued compared to its fair value and its price relative to the market?

19.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FSH (€0.79) is trading below our estimate of fair value (€0.98)

Significantly Below Fair Value: FSH is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FSH is poor value based on its PE Ratio (26.1x) compared to the Consumer Services industry average (18.1x).

PE vs Market: FSH is poor value based on its PE Ratio (26.1x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: FSH is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: FSH is overvalued based on its PB Ratio (3.6x) compared to the XE Consumer Services industry average (2.5x).


Next Steps

Future Growth

How is Fu Shou Yuan International Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

16.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FSH's forecast earnings growth (16.7% per year) is above the savings rate (-0.4%).

Earnings vs Market: FSH's earnings (16.7% per year) are forecast to grow faster than the German market (13.3% per year).

High Growth Earnings: FSH's earnings are forecast to grow, but not significantly.

Revenue vs Market: FSH's revenue (16.4% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: FSH's revenue (16.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FSH's Return on Equity is forecast to be low in 3 years time (16.9%).


Next Steps

Past Performance

How has Fu Shou Yuan International Group performed over the past 5 years?

18.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FSH has high quality earnings.

Growing Profit Margin: FSH's current net profit margins (29.5%) are lower than last year (30.1%).


Past Earnings Growth Analysis

Earnings Trend: FSH's earnings have grown by 18.5% per year over the past 5 years.

Accelerating Growth: FSH's earnings growth over the past year (16.1%) is below its 5-year average (18.5% per year).

Earnings vs Industry: FSH earnings growth over the past year (16.1%) underperformed the Consumer Services industry 43.5%.


Return on Equity

High ROE: FSH's Return on Equity (15.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Fu Shou Yuan International Group's financial position?


Financial Position Analysis

Short Term Liabilities: FSH's short term assets (CN¥2.7B) exceed its short term liabilities (CN¥692.3M).

Long Term Liabilities: FSH's short term assets (CN¥2.7B) exceed its long term liabilities (CN¥548.3M).


Debt to Equity History and Analysis

Debt Level: FSH's debt to equity ratio (3.9%) is considered satisfactory.

Reducing Debt: FSH's debt to equity ratio has reduced from 4.1% to 3.9% over the past 5 years.

Debt Coverage: FSH's debt is well covered by operating cash flow (452.3%).

Interest Coverage: FSH earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: FSH has a high level of physical assets or inventory.

Debt Coverage by Assets: FSH's debt is covered by short term assets (assets are 16x debt).


Next Steps

Dividend

What is Fu Shou Yuan International Group's current dividend yield, its reliability and sustainability?

1.21%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%1.3%markettop25%3.6%industryaverage2.2%forecastin3Years1.7%

Current dividend yield vs market & industry

Notable Dividend: FSH's dividend (1.21%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: FSH's dividend (1.21%) is low compared to the top 25% of dividend payers in the German market (3.59%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, FSH has been paying a dividend for less than 10 years.

Growing Dividend: FSH's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.1%), FSH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FSH's dividends in 3 years are forecast to be well covered by earnings (31.1% payout ratio).


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Jisheng Wang (66yo)

CN¥7,279,000

Compensation

Mr. Jisheng Wang serves as a Chief Executive of Fu Shou Yuan International Group Ltd and has been its Executive Director since January 30, 2013. Mr. Wang is responsible for the overall management and busin ...


CEO Compensation Analysis

Compensation vs Market: Jisheng's total compensation ($USD1.04M) is below average for companies of similar size in the German market ($USD1.49M).

Compensation vs Earnings: Jisheng's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Xiaojiang Bai
Chairman0yrsCN¥7.28m4.72% CN¥87.0m
Jisheng Wang
Chief Executive and Executive Director0yrsCN¥7.28m4.72% CN¥87.0m
Li-An Tan
Vice Chairman0yrsCN¥353.00k0.040% CN¥731.1k
Zhenyu Yuan
Chief Financial Officer4.8yrsno datano data
Hua Yi
Chief Brand Officer and Group Officer of Culture & Education Committee0yrsno datano data
Yu Zhao
Head of Fu Shou Home Dept2.9yrsno datano data
Yi Hu
Company Secretary1.4yrsno datano data
Qiansong Ge
Senior Consultant0yrsno datano data

2.9yrs

Average Tenure

54yo

Average Age

Experienced Management: FSH's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Xiaojiang Bai
Chairman0yrsCN¥7.28m4.72% CN¥87.0m
Jisheng Wang
Chief Executive and Executive Director0yrsCN¥7.28m4.72% CN¥87.0m
Li-An Tan
Vice Chairman0yrsCN¥353.00k0.040% CN¥731.1k
Zhuping Luo
Independent Non-Executive Director6.2yrsCN¥423.00kno data
Man Ho
Independent Non-Executive Director6.2yrsCN¥423.00kno data
Hesheng Lu
Non-Executive Director7.1yrsCN¥543.00k1.22% CN¥22.4m
Chih-Cheng Huang
Non-Executive Director6.2yrsCN¥240.00k0.018% CN¥324.9k
Qunlin Chen
Independent Non-Executive Director6.2yrsCN¥183.00kno data
Xiang Ma
Non-Executive Director4.1yrsCN¥353.00kno data
Yanjun Liang
Independent Non-Executive Director0.3yrsno datano data

6.2yrs

Average Tenure

61yo

Average Age

Experienced Board: FSH's board of directors are considered experienced (6.2 years average tenure).


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 been diluted in the past year, with total shares outstanding growing by 2.5%.


Top Shareholders

Company Information

Fu Shou Yuan International Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fu Shou Yuan International Group Limited
  • Ticker: FSH
  • Exchange: DB
  • Founded: 1994
  • Industry: Specialized Consumer Services
  • Sector: Consumer Services
  • Market Cap: HK$15.512b
  • Listing Market Cap: HK$1.842b
  • Shares outstanding: 2.27b
  • Website: https://www.fsygroup.com

Number of Employees


Location

  • Fu Shou Yuan International Group Limited
  • Charity Building
  • Room 1306
  • Shanghai
  • 200030
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1448SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2013
FSHDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2013
FSHU.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2013
1448SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2013
1448SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2013

Biography

Fu Shou Yuan International Group Limited, together with its subsidiaries, primarily provides burial and funeral services in the People’s Republic of China. It operates through three segments: Burial Services, Funeral Services, and Others. The Burial Services segment sells burial plots; and offers cemetery maintenance services. The Funeral services segment engages in the planning of funeral arrangement; and interment, organizing, and hosting of the funeral. The Others segment manufactures and sells cremation machines; and provides auxiliary services, such as landscape and garden design. It also offers flowers and related designing services; sales and after-sales service for cremation devices; management services to cemeteries; and consulting services to burial and cemetery maintainers. In addition, the company sells agricultural products. As of December 31, 2018, it had approximately 20 cemeteries and 22 funeral facilities. Fu Shou Yuan International Group Limited was founded in 1994 and is headquartered in Shanghai, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 22:11
End of Day Share Price2020/02/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.