Guangshen Railway Company Limited (GSHHY) Company Bio
Guangshen Railway Company Limited engages in the railway passenger and freight transportation business in the People's Republic of China. The company's passenger transportation services include the operation of Guangzhou-Shenzhen inter-city express trains, long-distance trains, and Guangzhou-Hong Kong city through trains. Its freight transportation services comprise the transportation of full load and single load cargo, containers, bulky and heavy cargo, dangerous goods, perishable goods, and oversized cargo. The company also provides railway network usage services; and other transportation-related services, such as railway operation, locomotive and passenger car leasing, passenger service, and luggage transportation services, as well as sells food, beverages, and merchandise on board the trains and in railway stations. In addition, it is involved in train repair, on-board catering, materials and supplies sale, goods sale, cargo loading and unloading, and other businesses related to railway transportation. Further, the company offers warehousing, hotel management, and real estate construction services. As of December 31, 2019, it operated 246.5 pairs of passenger trains on a daily basis, including 105 pairs of Guangzhou-Shenzhen inter-city trains, 10 pairs of Hong Kong through Trains, and 131.5 pairs of long-distance trains. The company was founded in 1996 and is based in Shenzhen, the People's Republic of China.
GSHHY Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for GSHHY, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Guangshen Railway Co Ltd ranked in the 6th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for GSHHY, they are:
Its compound free cash flow growth rate, as measured over the past 4.01 years, is -0.17% -- higher than merely 9.62% of stocks in our DCF forecasting set.
The business' balance sheet reveals debt to be 0% of the company's capital (with equity being the remaining amount). Approximately merely 3.6% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than only 0% of stocks in its sector (Industrials).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ARTW, ATCX, SVT, TAYD, and CHRA can be thought of as valuation peers to GSHHY, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.