While AVIC Heavy Machinery Co., Ltd. (SHSE:600765) might not be the most widely known stock at the moment, it saw a double-digit share price rise of over 10% in the past couple of months on the SHSE. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company's outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let's examine AVIC Heavy Machinery's valuation and outlook in more detail to determine if there's still a bargain opportunity.
See our latest analysis for AVIC Heavy Machinery
What's The Opportunity In AVIC Heavy Machinery?
The share price seems sensible at the moment according to my price multiple model, where I compare the company's price-to-earnings ratio to the industry average. I've used the price-to-earnings ratio in this instance because there's not enough visibility to forecast its cash flows. The stock's ratio of 39.4x is currently trading slightly above its industry peers' ratio of 35.21x, which means if you buy AVIC Heavy Machinery today, you'd be paying a relatively reasonable price for it. And if you believe AVIC Heavy Machinery should be trading in this range, then there isn't really any room for the share price grow beyond the levels of other industry peers over the long-term. In addition to this, it seems like AVIC Heavy Machinery's share price is quite stable, which could mean there may be less chances to buy low in the future now that it's trading around the price multiples of other industry peers. This is because the stock is less volatile than the wider market given its low beta.
Can we expect growth from AVIC Heavy Machinery?
![earnings-and-revenue-growth](https://usnewsfile.futunn.com/pic/0-15895257-0-23297d4b86de77889b33a5fb0bd955ca.png/big)
SHSE:600765 Earnings and Revenue Growth October 24th 2022
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 70% over the next couple of years, the future seems bright for AVIC Heavy Machinery. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What This Means For You
Are you a shareholder? 600765's optimistic future growth appears to have been factored into the current share price, with shares trading around industry price multiples. However, there are also other important factors which we haven't considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at 600765? Will you have enough conviction to buy should the price fluctuate below the industry PE ratio?
Are you a potential investor? If you've been keeping tabs on 600765, now may not be the most optimal time to buy, given it is trading around industry price multiples. However, the positive outlook is encouraging for 600765, which means it's worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
It can be quite valuable to consider what analysts expect for AVIC Heavy Machinery from their most recent forecasts. Luckily, you can check out what analysts are forecasting by clicking here.
If you are no longer interested in AVIC Heavy Machinery, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
虽然中航重机股份有限公司(上海证券交易所代码:600765)目前可能不是最广为人知的股票,但它的股价在过去几个月里在上海证交所实现了超过10%的两位数涨幅。作为一只分析师覆盖率很高的中型股,你可以假设该公司最近前景的任何变化都已经计入了股价。然而,该股目前的交易价格还会相对便宜吗?让我们更详细地审视中航重工的估值和前景,以确定是否仍有逢低买入的机会。
查看我们对中航重型机械的最新分析
中航重机有什么机会?
根据我的市盈率模型,该公司的市盈率与行业平均水平进行了比较,目前股价似乎是合理的。我之所以在这种情况下使用市盈率,是因为没有足够的可见性来预测其现金流。该股目前的市盈率为39.4倍,略高于行业同行的35.21倍,这意味着如果你今天买入中航重工,你将支付一个相对合理的价格。如果你认为中航重工的股价应该在这个区间内交易,那么从长期来看,中航重工的股价实际上没有任何超出其他行业同行水平的上涨空间。除此之外,中航重工的股价似乎相当稳定,这可能意味着,由于该公司目前的市盈率在其他行业同行的市盈率附近,未来逢低买入的机会可能会减少。这是因为,鉴于其贝塔系数较低,该股的波动性低于大盘。
我们能指望中航重机实现增长吗?
![earnings-and-revenue-growth](https://usnewsfile.futunn.com/pic/0-15895257-0-23297d4b86de77889b33a5fb0bd955ca.png/big)
上海证交所:600765收益和收入增长2022年10月24日
寻求投资组合增长的投资者可能希望在购买一家公司的股票之前考虑其前景。尽管价值投资者会争辩说,相对于价格的内在价值才是最重要的,但一个更有说服力的投资命题是以低廉的价格实现高增长潜力。由于未来几年利润预计将增长70%,中航重工的前景似乎是光明的。看起来,该公司股票有可能出现更高的现金流,这应该会带来更高的股票估值。
这对你意味着什么
你是股东吗?600765乐观的未来增长似乎已被计入当前股价,股价在行业市盈率附近交易。然而,还有其他重要的因素我们今天没有考虑,比如公司的财务实力。这些因素与你上次关注的600765相比有变化吗?如果价格波动低于行业市盈率,你会有足够的信心买入吗?
你是潜在的投资者吗?如果你一直在关注600765,现在可能不是买入的最佳时机,因为它的交易价格在行业市盈率附近。然而,乐观的前景对600765来说是令人鼓舞的,这意味着它值得进一步研究其他因素,如其资产负债表的实力,以利用下一次价格下跌。
考虑一下分析师对中航重工最新预测的预期,这可能是相当有价值的。幸运的是,您可以通过单击此处查看分析师的预测。
如果你对中航重工不再感兴趣,你可以使用我们的免费平台查看我们的50多只其他具有高增长潜力的股票。
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本文由Simply Wall St.撰写,具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论,我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议,也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意,我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。