Baoshan Iron & Steel (600019.SS)
Materials · Shanghai · China
Fundamentals
Valuation and ratings
Baoshan Iron & Steel trades at CN¥5.75, which is 63% below the CN¥9.37 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 33 out of 100, which is little in the way of a moat. 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 11.7 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 Baoshan Iron & Steel
Baoshan Iron & Steel Co., Ltd., together with its subsidiaries, manufactures and sells steel products in China and internationally. It operates through three segments: Steel Manufacturing, Processing and Distribution, and Others. The company offers hot rolled steel; Al-Zn coated and BaoAM; tin plate and TFS; heavy plate; pipe and tube; and bar and wire rod, as well as picked, cold rolled, galvanized, pre-painted, electrical, and rail steel sheets. It is also involved in asset management; technology services; steel trading; and manufacturing of laser-welded panels. The company's products are used in energy vehicles, construction, transportation, power transmission and distribution, and energy efficiency improvement, as well as water, nuclear, wind, and solar energy industries. It exports its products. The company was incorporated in 2000 and is based in Shanghai, China. Baoshan Iron & Steel Co., Ltd. operates as a subsidiary of China Baowu Steel Group Co.,Ltd.
600019.SS 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 Baoshan Iron & Steel (600019.SS) undervalued?
Against our discounted cash flow estimate of CN¥9.37, 600019.SS at CN¥5.75 is 63% below 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 600019.SS's P/E ratio?
600019.SS trades at 11.7 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.