Kweichow Moutai (600519.SS)

Consumer · Shanghai · China

CN¥1,256.77+1.35% today

Fundamentals

Market capCN¥1.51T

P/E ratio18.2

Dividend yield4.31%

Revenue growth (YoY)+6.5%

Profit margin48.0%

Return on equity31.2%

52-week rangeCN¥1,151.01 to CN¥1,568.00

Valuation and ratings

DCF fair valueCN¥739.54

Upside to fair value-41.2%

Moat score94/100

Overall rating60/100, Buy

Kweichow Moutai trades at CN¥1,256.77, which is 41% above the CN¥739.54 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.

Our moat model scores it 94 out of 100, which is a wide 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 18.2 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 Kweichow Moutai

Kweichow Moutai Co., Ltd., together with its subsidiaries, produces and sells liquor products in China and internationally. The company offers liquor and soy sauce products under the Kweichow Moutai, Moutai Wangzi liquor, Moutai 1935 liquor, Han Jiang liquor, and Lai Mao liquor brands. It also engages in the production and sale of beverage, food, and packaging materials; development of anti-counterfeiting technology; research and development of information industry related products; operation and management of hotel, accommodation, catering, entertainment, bathing, and parking lot services; and provision of vehicle transportation and maintenance, and value-added telecommunication services. The company was incorporated in 1999 and is headquartered in Renhuai, China. Kweichow Moutai Co., Ltd. operates as a subsidiary of China Kweichow Moutai Distillery(Group)Co,.Ltd.

Industry: Beverages - Wineries & DistilleriesEmployees: 34,992HQ: China

600519.SS passes 6 of our 30 screens today

Each screen prints the exact criteria it used, and the circumstances in which it is wrong.

Wide moat compounders

Businesses with a structural reason competitors cannot take their profits away. The rarest and most valuable thing in investing.

Dividend powerhouses

Yields above 3%, filtered for the one thing yield screens never check: whether the company can actually afford it.

Growing dividend payers

A modest yield attached to a growing business beats a large yield attached to a shrinking one, every time, over any horizon that matters.

High return on equity, low debt

A high ROE is easy to fake with borrowing. This screen demands the return without the leverage, which is a much shorter list.

Fortress balance sheets

Companies that owe almost nothing. They will survive things that kill their competitors, and they can buy the wreckage afterwards.

High margin machines

Companies that keep an unusually large share of every pound they sell. That is pricing power made visible.

Common questions

Is Kweichow Moutai (600519.SS) undervalued?

Against our discounted cash flow estimate of CN¥739.54, 600519.SS at CN¥1,256.77 is 41% 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 600519.SS's P/E ratio?

600519.SS trades at 18.2 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.

The full research page for 600519.SS, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.

Open 600519.SS in the app Free guides and screens

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.