Zhixin Group Holding Valuation

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

ZHIX.F ($0.06) is trading below our estimate of [[fair value]] ($0.19)

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: ZHIX.F ($0.06) is trading below our estimate of fair value ($0.19)

Significantly Below Fair Value: ZHIX.F is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ZHIX.F?

Key metric: As ZHIX.F is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for ZHIX.F. This is calculated by dividing ZHIX.F's market cap by their current revenue.
What is ZHIX.F's PS Ratio?
PS Ratio	0.9x
Sales	CN¥525.83m
Market Cap	CN¥417.58m

ZHIX.F 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	1.6x
Enterprise Value/EBITDA	20.5x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does ZHIX.F's PS Ratio compare to its peers?

The above table shows the PS ratio for ZHIX.F vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	4.1x
RETO ReTo Eco-Solutions	5.3x	n/a	US$19.2m
SMID Smith-Midland	3.2x	n/a	US$241.3m
MCEM Monarch Cement	2.9x	n/a	US$800.2m
LOMA Loma Negra Compañía Industrial Argentina Sociedad Anónima	5.1x	16.4%	US$1.2b
ZHIX.F Zhixin Group Holding	0.9x	n/a	US$448.8m

Price-To-Sales vs Peers: ZHIX.F is good value based on its Price-To-Sales Ratio (0.9x) compared to the peer average (4.1x).

Price to Sales Ratio vs Industry

How does ZHIX.F's PS Ratio compare vs other companies in the North American Basic Materials Industry?

1 Company	Price / Sales	Estimated Growth	Market Cap

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: ZHIX.F is good value based on its Price-To-Sales Ratio (0.9x) compared to the Global Basic Materials industry average (1.2x).

Price to Sales Ratio vs Fair Ratio

What is ZHIX.F'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.

ZHIX.F PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.9x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate ZHIX.F'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.

Discover undervalued companies

Chemtrade Logistics Income Fund

CA$1.4b

Offers industrial chemicals and services in Canada, the United States, and South America.

CGIF.F

CA$8.31

0.2%

28.8%

Eldorado Gold

CA$4.7b

Engages in the mining, exploration, development, and sale of mineral products primarily in Turkey, Canada, Greece, and Romania.

EGO

CA$15.69

-1.9%

28.0%

Mativ Holdings

US$716.7m

Manufactures and sells specialty materials in the United States, Europe, the Asia Pacific, the Americas, and internationally.

MATV

US$14.02

12.8%

14.2%