Midea Group (000333.SZ)
Consumer · Shenzhen · China
Fundamentals
Valuation and ratings
Midea Group trades at CN¥82.26, close to the CN¥81.77 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.
Our moat model scores it 53 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 13.6 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Midea Group
Midea Group Co., Ltd., together with its subsidiaries, engages in the manufacture and sale of electrical appliance in China and internationally. The company operates in Smart Home System, Building Technology, Robotics and Automation, and Industrial Technology, and Other Innovative Business. It offers smart home products such as household air conditioners, central air conditioners, heating and ventilation systems, kitchen appliances, refrigerators, washing machines, and various small appliances; commercial and industrial solutions, including products and services, such as elevators, high and low voltage frequency converters, medical imaging products, robots, and automation systems; and other businesses including smart supply chain, sales, wholesale and processing of household appliance raw materials, as well as financial businesses, such as deposit taking, interbank lending, consumer credit, buyer credit, and financial leasing. Additionally, it provides Internet of Things solutions. Midea Group Co., Ltd. was founded in 1968 and is based in Foshan, China.
000333.SZ passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Midea Group (000333.SZ) undervalued?
Against our discounted cash flow estimate of CN¥81.77, 000333.SZ at CN¥82.26 is 1% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is 000333.SZ's P/E ratio?
000333.SZ trades at 13.6 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.