China Petroleum & Chemical Corp ADR (SNP:NYE) Analysts rate as a Sell

STA Research
by: STA Research
China Petroleum

Based on the China Petroleum & Chemical Corp ADR’s average analyst rating is Sell. Stock Target Advisor’s own stock analysis of China Petroleum & Chemical Corp ADR is Slightly Bullish , which is based on 10 positive signals and 7 negative signals. At the last closing, China Petroleum & Chemical Corp ADR’s stock price was USD 42.70. China Petroleum & Chemical Corp ADR’s stock price has changed by -3.55% over the past week, -8.12% over the past month and -15.71% over the last year.

Goldman Sachs just downgraded the stock to a Sell rating from a Neutral rating on the company.

Citigroup also downgraded the stock to Sell from Buy.

China Petroleum & Chemical Corporation is an energy and chemical corporation that operates in Mainland China, Singapore, and globally in the oil and gas and chemical industries. Exploration and Production, Refining, Marketing and Distribution, Chemicals, and Corporate and Other are the company’s five segments.

The company was founded in the year 2000 and is based in Beijing, China. China Petrochemical Corporation owns China Petroleum & Chemical Corporation, which is a subsidiary of China Petrochemical Corporation.

 

What we like:

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced compared to book value

The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced on cashflow basis

The stock is trading low compared to its peers on a price to cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Low debt

The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Underpriced on free cash flow basis

The stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Poor return on equity

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector

Low Dividend Growth

This stock has shown below median dividend growth in the previous 5 years compared to its sector.

 

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