Anhui Conch Cement (600585.SS)
Materials · Shanghai · China
Fundamentals
Valuation and ratings
Anhui Conch Cement trades at CN¥17.72, which is 107% below the CN¥36.73 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 39 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 11.6 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 Anhui Conch Cement
Anhui Conch Cement Company Limited, together with its subsidiaries, manufactures, sells, and trades in clinker and cement products in China and internationally. The company provides construction and installation services for industrial purposes; logistic transportation agency and warehouse logistics services; financial supporting services; road freight transport; and mining and related services. It also manufactures and sells cement packaging products, concrete products, refractory materials, construction materials, nonmetallic mineral products, new materials, and chemical fibres; develops and sells profile and related products; exports clinker and cement products; processes and sells construction stones, and manufactured sand; sells aggregates; and constructs industrial and civil buildings, and highways. In addition, it is involved in investment and trading; machinery installation and maintenance; product testing and environmental inspection; technical services, development, and consulting; industrial product design; industrial waste storage and disposal; photovoltaic and wind power generation, and energy storage system development; renewable resources sales and renewable resource processing; research, development, and manufacture of automation machinery; and research and experimental development. Anhui Conch Cement Company Limited was incorporated in 1997 and is based in Wuhu, the People's Republic of China.
600585.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 Anhui Conch Cement (600585.SS) undervalued?
Against our discounted cash flow estimate of CN¥36.73, 600585.SS at CN¥17.72 is 107% 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 600585.SS's P/E ratio?
600585.SS trades at 11.6 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.