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:
We started the process of determining a valid price forecast for Guangshen Railway Co Ltd with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Guangshen Railway Co Ltd ranked in the 6th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 98%. The most interesting components of our discounted cash flow analysis for Guangshen Railway Co Ltd ended up being:
The company's compound free cash flow growth rate over the past 4.01 years comes in at -0.17%; that's greater than only 9.68% of US stocks we're applying DCF forecasting to.
The business' balance sheet reveals debt to be 0% of the company's capital (with equity being the remaining amount). Approximately merely 3.63% 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 merely 0% of stocks in its sector (Industrials).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as GSHHY, try ARTW, ATCX, SVT, TAYD, and CHRA.