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Sgis Songshan Co Ltd
SZSE:000717

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Sgis Songshan Co Ltd
SZSE:000717
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Price: 2.49 CNY 0.81% Market Closed
Market Cap: ¥6B

P/OCF

2.9
Current
30%
Cheaper
vs 3-y average of 4.1

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
2.9
=
Market Cap
¥5.9B
/
Operating Cash Flow
¥2.1B

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
2.9
=
Market Cap
¥5.9B
/
Operating Cash Flow
¥2.1B

Valuation Scenarios

Sgis Songshan Co Ltd is trading below its 3-year average

If P/OCF returns to its 3-Year Average (4.1), the stock would be worth ¥3.55 (42% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+530%
Average Upside
284%
Scenario P/OCF Value Implied Price Upside/Downside
Current Multiple 2.9 ¥2.49
0%
3-Year Average 4.1 ¥3.55
+42%
5-Year Average 3.9 ¥3.36
+35%
Industry Average 18.3 ¥15.68
+530%
Country Average 18.3 ¥15.67
+529%

Forward P/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward P/OCF

Peer Comparison

All Multiples
P/OCF
P/E
All Countries
Close
Market Cap P/OCF P/E
CN
Sgis Songshan Co Ltd
SZSE:000717
6B CNY 2.9 -14.4
ZA
Kumba Iron Ore Ltd
JSE:KIO
98.1B ZAR 3.6 6.7
BR
Vale SA
BOVESPA:VALE3
339.1B BRL 7.1 25.1
US
Nucor Corp
NYSE:NUE
50.9B USD 15.9 29.6
AU
Fortescue Ltd
XMUN:FVJ
37.9B EUR 6 11.7
AU
Fortescue Metals Group Ltd
ASX:FMG
62.2B AUD 5.7 11
LU
ArcelorMittal SA
AEX:MT
37.3B EUR 9 13.7
IN
JSW Steel Ltd
NSE:JSWSTEEL
3.1T INR 10.9 41.2
US
Steel Dynamics Inc
NASDAQ:STLD
32.5B USD 22.9 24.1
IN
Tata Steel Ltd
NSE:TATASTEEL
2.7T INR 8.6 28.7
KR
Posco Holdings Inc
KRX:005490
35.5T KRW 7.8 53.9
P/E Multiple
Earnings Growth PEG
CN
Sgis Songshan Co Ltd
SZSE:000717
Average P/E: 24.6
Negative Multiple: -14.4
N/A N/A
ZA
K
Kumba Iron Ore Ltd
JSE:KIO
6.7
-5%
N/A
BR
Vale SA
BOVESPA:VALE3
25.1
47%
0.5
US
Nucor Corp
NYSE:NUE
29.6
25%
1.2
AU
F
Fortescue Ltd
XMUN:FVJ
11.7
-5%
N/A
AU
Fortescue Metals Group Ltd
ASX:FMG
11
-5%
N/A
LU
ArcelorMittal SA
AEX:MT
13.7
18%
0.8
IN
JSW Steel Ltd
NSE:JSWSTEEL
41.2
72%
0.6
US
Steel Dynamics Inc
NASDAQ:STLD
24.1
23%
1
IN
Tata Steel Ltd
NSE:TATASTEEL
28.7
82%
0.3
KR
Posco Holdings Inc
KRX:005490
53.9
65%
0.8

Market Distribution

Lower than 93% of companies in China
Percentile
7th
Based on 6 232 companies
7th percentile
2.9
Low
0.2 — 9.8
Typical Range
9.8 — 36.5
High
36.5 —
Distribution Statistics
China
Min 0.2
30th Percentile 9.8
Median 18.3
70th Percentile 36.5
Max 266 666.7

Sgis Songshan Co Ltd
Glance View

Market Cap
6B CNY
Industry
Metals & Mining

SGIS Songshan Co., Ltd., nestled within China's burgeoning industrial landscape, has carved a robust niche within the steel manufacturing sector. This company emerged as a pivotal player primarily through its strategic focus on specialized steel production. It specializes in producing high-quality steel plates and long products. By catering to diverse industrial applications, ranging from automobile manufacturing to construction and machinery, SGIS Songshan captures a wide customer base. Its business model capitalizes on the economies of scale achieved through large-scale production facilities, enabling the company to maintain competitive pricing. The integration of advanced technology in their manufacturing processes also contributes to higher efficiency and product quality, setting a high bar within the industry. The company’s growth narrative is intricately tied to China’s rapid infrastructure development and industrial expansion, providing a fertile ground for sustained demand. SGIS Songshan's revenue streams are fueled by domestic sales, bolstered by a robust distribution network and strategic partnerships that ensure broad market penetration. Moreover, its emphasis on research and development positions it ahead of competitors by fostering innovation in new steel grades and production methodologies. By leveraging this approach, SGIS Songshan not only fortifies its market position but also extends its influence beyond national borders, tapping into export opportunities, thereby weaving a story of persistent advancement and adaptation in the dynamic global steel market.

Intrinsic Value
10.65 CNY
Undervaluation 77%
Intrinsic Value
Price ¥2.49
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