A Look at COSCO SHIPPING Holdings (SEHK:1919) Valuation Following Nine-Month Earnings Decline

COSCO SHIPPING Holdings (SEHK:1919) released its earnings for the nine months ended September 2025, revealing declines in both revenue and net income compared to the same period last year. Investors are watching closely to gauge what these results mean for the company’s direction.

See our latest analysis for COSCO SHIPPING Holdings.

Despite reporting lower earnings, COSCO SHIPPING Holdings’ recent momentum has surprised many. The company recorded a sharp 18.7% 30-day share price return and a 1-year total shareholder return of 31.8%. The stock’s solid five-year total return suggests underlying investor confidence, even as shorter-term results have disappointed.

If COSCO’s price swings have caught your attention, now is a good time to broaden your search and discover fast growing stocks with high insider ownership

With COSCO SHIPPING Holdings trading close to analyst price targets but still offering a meaningful discount to intrinsic value, investors may wonder if the stock remains underestimated or if the market already reflects future growth. Is there a buying opportunity here, or are expectations fully built in?

Price-to-Earnings of 5.3x: Is it justified?

COSCO SHIPPING Holdings is currently trading at a price-to-earnings (P/E) ratio of just 5.3x, making it appear attractively valued when compared to both its industry and wider peer group. The last close was HK$14.2, suggesting the stock is at a significant discount relative to comparable shipping companies in Asia.

The price-to-earnings ratio measures how much investors are willing to pay for each HK$1 of earnings. In the shipping sector, this multiple is often used to assess whether a company’s performance, stability, and earnings sustainability justify a premium or discount compared to competitors.

At 5.3x, COSCO's multiple is well below the Asian shipping industry average of 10.8x and the peer average of 8.5x. This significant gap indicates the market could be underpricing COSCO's earnings potential. Furthermore, the stock trades just under the estimated fair P/E of 5.8x, highlighting a level investors may focus on as sentiment shifts.

Explore the SWS fair ratio for COSCO SHIPPING Holdings

Result: Price-to-Earnings of 5.3x (UNDERVALUED)

However, persistent revenue and net income declines, along with recent price volatility, could challenge the current investor optimism surrounding COSCO SHIPPING Holdings.

Find out about the key risks to this COSCO SHIPPING Holdings narrative.

Another View: Discounted Cash Flow Model

Shifting focus from earnings multiples, our SWS DCF model values COSCO SHIPPING Holdings at HK$17.72 per share, which is about 19.9% above the current price of HK$14.2. This suggests the market could be undervaluing the company’s future cash flows. Could the gap hint at further upside, or does it merely reflect future uncertainty?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out COSCO SHIPPING Holdings for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 877 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own COSCO SHIPPING Holdings Narrative

If you have your own take or want to dig deeper, you can easily piece together your own view in just a few minutes. Do it your way

A great starting point for your COSCO SHIPPING Holdings research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

Maximize your investing edge by checking out smart strategies beyond COSCO SHIPPING Holdings. Don’t miss your chance to uncover opportunities in high-potential, fast-moving sectors right now.

• Find income potential with stocks offering attractive yields by checking out these 16 dividend stocks with yields > 3% ahead of market trends.
• Spot companies redefining the future with groundbreaking artificial intelligence by exploring these 25 AI penny stocks driving innovation in this space.
• Uncover overlooked gems trading below their real value when you review these 877 undervalued stocks based on cash flows for value-packed opportunities.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com