PetroChina Company (601857.SS)
Energy · Shanghai · China
Fundamentals
Valuation and ratings
PetroChina Company trades at CN¥10.19, close to the CN¥9.76 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.
Our moat model scores it 47 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 10.8 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 PetroChina Company
PetroChina Company Limited, together with its subsidiaries, engages in a range of petroleum related products, services, and activities in Mainland China and internationally. It operates through the Oil and Gas and New Energy; Refining, Chemicals and New Materials; Sales; and Natural Gas Sales Segments. The Oil, Gas and New Energy Resource segment engages in the exploration, development, transportation, production, and marketing of crude oil and natural gas, as well as is involved in the new energy resource business. The Refining, Chemicals and New Materials segment refines crude oil and petroleum products; and produces and markets primary petrochemical products, derivative chemical products, and other chemical products; as well as engages in new materials business. The Sales segment is involved in the marketing of refined and non-oil products, and trading business. The Natural Gas Sales segment engages in the transmission and sale of natural gas. It is also involved in the exploration, development, and production of oil sands and coalbed methane; trading of crude oil and petrochemical products; investment in refining; storage, chemical engineering, storage facilities, service station, and transportation facilities and related businesses; chemical technology development; and provision of technology transfer and technical services. The company was incorporated in 1999 and is headquartered in Beijing, the People's Republic of China. PetroChina Company Limited operates as a subsidiary of China National Petroleum Corporation.
601857.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 PetroChina Company (601857.SS) undervalued?
Against our discounted cash flow estimate of CN¥9.76, 601857.SS at CN¥10.19 is 4% 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 601857.SS's P/E ratio?
601857.SS trades at 10.8 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.