SMIC (688981.SS)
Technology · Shanghai · China
Fundamentals
Valuation and ratings
SMIC trades at CN¥142.32, which is 17% above the CN¥118.71 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 44 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 262.9 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 SMIC
Semiconductor Manufacturing International Corporation, an investment holding company, engages in the manufacture, testing, and sale of integrated circuits wafer and various compound semiconductors in the United States, China, and Eurasia. The company is also involved in the manufacturing, sale, and trading of semiconductor products; and research and development activities. In addition, it offers semiconductor foundry and technology services; supporting services comprising design and IP support, photomask manufacturing, etc.; development, design, and technical services related to integrated circuits; marketing related services; and private education services. Further, the company tests and sells self-produced products, and other services. Semiconductor Manufacturing International Corporation was incorporated in 2000 and is headquartered in Shanghai, China.
688981.SS passes 3 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is SMIC (688981.SS) undervalued?
Against our discounted cash flow estimate of CN¥118.71, 688981.SS at CN¥142.32 is 17% 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 688981.SS's P/E ratio?
688981.SS trades at 262.9 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.