China Shengmu Organic Milk Limited

DB:7OM Stock Report

Market Cap: €170.4m

China Shengmu Organic Milk Valuation

Is 7OM 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-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 7OM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7OM (€0.02) is trading above our estimate of fair value (€0.01)

Significantly Below Fair Value: 7OM is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 7OM?

Key metric: As 7OM is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 7OM. This is calculated by dividing 7OM's market cap by their current revenue.
What is 7OM's PS Ratio?
PS Ratio0.4x
SalesCN¥3.31b
Market CapCN¥1.29b

Price to Sales Ratio vs Peers

How does 7OM's PS Ratio compare to its peers?

The above table shows the PS ratio for 7OM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.7x
OEL ADM Hamburg
0.4xn/a€169.2m
KWS KWS SAAT SE KGaA
1.1x4.9%€1.9b
GTK Tonkens Agrar
0.6xn/a€12.3m
NLM FRoSTA
0.6xn/a€415.6m
7OM China Shengmu Organic Milk
0.4xn/a€1.4b

Price-To-Sales vs Peers: 7OM is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (0.7x).

Price to Sales Ratio vs Industry

How does 7OM's PS Ratio compare vs other companies in the European Food Industry?

35 CompaniesPrice / SalesEstimated GrowthMarket Cap
7OM 0.4xIndustry Avg. 0.7xNo. of Companies48PS00.81.62.43.24+
35 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 7OM is good value based on its Price-To-Sales Ratio (0.4x) compared to the European Food industry average (0.7x).

Price to Sales Ratio vs Fair Ratio

What is 7OM'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.

7OM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.4x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 7OM'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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