Shandong Molong Petroleum Machinery Company Limited Fundamental Analysis
Shandong Molong Petroleum Machinery Company Limited Fundamental Analysis
Shandong Molong Petroleum Machinery Company Limited (SHANF) shows weak financial fundamentals with a PE ratio of 1016.14, profit margin of 0.24%, and ROE of 1.00%. The company generates $3.9B in annual revenue with weak year-over-year growth of 2.95%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 8.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SHANF's fundamental strength across five key dimensions:
Efficiency Score
WeakSHANF struggles to generate sufficient returns from assets.
Valuation Score
ModerateSHANF shows balanced valuation metrics.
Growth Score
ModerateSHANF shows steady but slowing expansion.
Financial Health Score
WeakSHANF carries high financial risk with limited liquidity.
Profitability Score
WeakSHANF struggles to sustain strong margins.
Key Financial Metrics
Is SHANF Expensive or Cheap?
P/E Ratio
SHANF trades at 1016.14 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SHANF's PEG of 0.48 indicates potential undervaluation.
Price to Book
The market values Shandong Molong Petroleum Machinery Company Limited at 10.12 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 66.68 times EBITDA. This signals the market has high growth expectations.
How Well Does SHANF Make Money?
Net Profit Margin
For every $100 in sales, Shandong Molong Petroleum Machinery Company Limited keeps $0.24 as profit after all expenses.
Operating Margin
Core operations generate 3.03 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.00 in profit for every $100 of shareholder equity.
ROA
Shandong Molong Petroleum Machinery Company Limited generates $0.18 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Shandong Molong Petroleum Machinery Company Limited generates limited operating cash flow of $60.26M, signaling weaker underlying cash strength.
Free Cash Flow
Shandong Molong Petroleum Machinery Company Limited generates weak or negative free cash flow of $-189.43M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.13 in free cash annually.
FCF Yield
SHANF converts -1.10% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
1016.14
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.48
vs 25 benchmark
P/B Ratio
Price to book value ratio
10.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.41
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.14
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.010
vs 25 benchmark
ROA
Return on assets percentage
0.002
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How SHANF Stacks Against Its Sector Peers
| Metric | SHANF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 1016.14 | 20.85 | Worse (Expensive) |
| ROE | 1.00% | 1014.00% | Weak |
| Net Margin | 0.24% | -57829.00% (disorted) | Weak |
| Debt/Equity | 3.14 | -0.46 (disorted) | Distorted |
| Current Ratio | 0.83 | 4.93 | Weak Liquidity |
| ROA | 0.18% | -10983113.00% (disorted) | Weak |
SHANF outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Shandong Molong Petroleum Machinery Company Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-69.10%
Industry Style: Cyclical, Value, Commodity
DecliningEPS CAGR
80.57%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
-93.63%
Industry Style: Cyclical, Value, Commodity
Declining