China Railway Group (601390.SS)
Industrials · Shanghai · China
Fundamentals
Valuation and ratings
China Railway Group trades at CN¥4.47, which is 111% below the CN¥9.42 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 25 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 5.5 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 Railway Group
China Railway Group Limited, together with its subsidiaries, engages in the construction and engineering contractor business in China and internationally. The company operates through six segments: Engineering Construction; Design Consulting; Equipment Manufacturing; Specialty Real Estate; Asset Management; and Resource Utilization. It constructs railways, highways, bridges, tunnels, urban rail transits, stations and buildings, municipal facilities, and other projects; offers consulting and planning, feasibility study, survey and design, research and development, and construction supervision of railways, highways, and municipal facilities and others; and manufactures steel structure, switch, and other mechanical products, as well as shield machines and back-up equipment, electrified equipment, and railway construction machinery. The company also develops residential, commercial, tourism, and pension real estate, as well as urban complexes; engages in the operation, maintenance, management, and asset management of infrastructure investment projects; and operates mining and provides mineral products, including concentrates of copper, cobalt, molybdenum, lead, and zinc, as well as cathode copper and cobalt hydroxide. In addition, it is involved in financial trust and management; financial services; capital investment; commodity trade; software and information technology services; talent information network services; and franchise operation. The company was founded in 1950 and is headquartered in Beijing, China.
601390.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 Railway Group (601390.SS) undervalued?
Against our discounted cash flow estimate of CN¥9.42, 601390.SS at CN¥4.47 is 111% 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 601390.SS's P/E ratio?
601390.SS trades at 5.5 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.