Julong Holding Limited (JLHL)
Industrials · NCM
Fundamentals
Valuation and ratings
Julong Holding Limited trades at USD6.08, close to the USD6.93 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 46 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 47.8 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 Julong Holding Limited
Julong Holding Limited provides intelligent integrated services and solutions to various infrastructure projects in China. The company offers intelligent integrated solutions, such as intelligent security systems, fire protection systems, parking systems, toll collection systems, broadcasting systems, identification systems, data room systems, emergency command systems, and city management systems. It engages in the design, procurement, installation, integration, and maintenance of the security, access control, and parking systems; installation, integration, and maintenance of the parking and visitor management systems; operation and maintenance of the intelligent integrated systems; and sale of equipment and materials of intelligent systems. The company serves private and public sector clients that include public utilities, and commercial and multifamily residential properties. The company was founded in 1997 and is headquartered in Beijing, China. Julong Holding Limited is a subsidiary of Datongyi Holding Limited.
JLHL passes 5 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Julong Holding Limited (JLHL) undervalued?
Against our discounted cash flow estimate of USD6.93, JLHL at USD6.08 is 14% 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 JLHL's P/E ratio?
JLHL trades at 47.8 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.