China Shenhua Energy (601088.SS)
Energy · Shanghai · China
Fundamentals
Valuation and ratings
China Shenhua Energy trades at CN¥44.17, which is 45% above the CN¥24.08 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 58 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 16.2 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 China Shenhua Energy
China Shenhua Energy Company Limited, together with its subsidiaries, engages in the production and sale of coal and electricity in the People's Republic of China and internationally. The company operates through six segments: Coal Operations, Power Operations, Railway Operations, Port Operations, Shipping Operations, and Coal Chemical Operations. The Coal Operations segment produces and sells coal from surface and underground mines. The Power Operations segment generates and sells electric power to power grid companies. This segment also generates electric power through coal, thermal, water, photovoltaic, and gas. The Railway Operations segment provides railway transportation services. The Port Operations segment offers loading, transportation, and storage services. The Shipping Operations segment provides shipment transportation services. The Coal Chemical Operations segment produces methanol; and processes and sells polyethylene and polypropylene, as well as other by-products. It is also involved in coal-to-olefins businesses. China Shenhua Energy Company Limited was incorporated in 2004 and is based in Beijing, the People's Republic of China. China Shenhua Energy Company Limited operates as a subsidiary of Chnenergy Investment Group Co.,LTD.
601088.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 China Shenhua Energy (601088.SS) undervalued?
Against our discounted cash flow estimate of CN¥24.08, 601088.SS at CN¥44.17 is 45% 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 601088.SS's P/E ratio?
601088.SS trades at 16.2 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.
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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.