China Yuchai International Stock Shows Every Sign Of Being Fairly Valued

GuruFocus.com
·4 min read

- By GF Value

The stock of China Yuchai International (NYSE:CYD, 30-year Financials) is estimated to be fairly valued, according to GuruFocus Value calculation. GuruFocus Value is GuruFocus' estimate of the fair value at which the stock should be traded. It is calculated based on the historical multiples that the stock has traded at, the past business growth and analyst estimates of future business performance. If the price of a stock is significantly above the GF Value Line, it is overvalued and its future return is likely to be poor. On the other hand, if it is significantly below the GF Value Line, its future return will likely be higher. At its current price of $16 per share and the market cap of $653.7 million, China Yuchai International stock appears to be fairly valued. GF Value for China Yuchai International is shown in the chart below.


China Yuchai International Stock Shows Every Sign Of Being Fairly Valued
China Yuchai International Stock Shows Every Sign Of Being Fairly Valued

Because China Yuchai International is fairly valued, the long-term return of its stock is likely to be close to the rate of its business growth, which averaged 8.5% over the past three years and is estimated to grow 5.81% annually over the next three to five years.

Link: These companies may deliever higher future returns at reduced risk.

It is always important to check the financial strength of a company before buying its stock. Investing in companies with poor financial strength have a higher risk of permanent loss. Looking at the cash-to-debt ratio and interest coverage is a great way to understand the financial strength of a company. China Yuchai International has a cash-to-debt ratio of 9999.00, which is in the bottom 10% of the companies in Industrial Products industry. The overall financial strength of China Yuchai International is 4 out of 10, which indicates that the financial strength of China Yuchai International is poor. This is the debt and cash of China Yuchai International over the past years:

China Yuchai International Stock Shows Every Sign Of Being Fairly Valued
China Yuchai International Stock Shows Every Sign Of Being Fairly Valued

It poses less risk to invest in profitable companies, especially those that have demonstrated consistent profitability over the long term. A company with high profit margins is also typically a safer investment than one with low profit margins. China Yuchai International has been profitable 10 over the past 10 years. Over the past twelve months, the company had a revenue of $2.7 billion and earnings of $1.962 a share. Its operating margin is 4.78%, which ranks in the middle range of the companies in Industrial Products industry. Overall, GuruFocus ranks the profitability of China Yuchai International at 6 out of 10, which indicates fair profitability. This is the revenue and net income of China Yuchai International over the past years:

China Yuchai International Stock Shows Every Sign Of Being Fairly Valued
China Yuchai International Stock Shows Every Sign Of Being Fairly Valued

Growth is probably the most important factor in the valuation of a company. GuruFocus research has found that growth is closely correlated with the long term performance of a company's stock. The faster a company is growing, the more likely it is to be creating value for shareholders, especially if the growth is profitable. The 3-year average annual revenue growth rate of China Yuchai International is 8.5%, which ranks better than 68% of the companies in Industrial Products industry. The 3-year average EBITDA growth rate is 2.7%, which ranks in the middle range of the companies in Industrial Products industry.

Another way to look at the profitability of a company is to compare its return on invested capital and the weighted cost of capital. Return on invested capital (ROIC) measures how well a company generates cash flow relative to the capital it has invested in its business. The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. We want to have the return on invested capital higher than the weighted cost of capital. For the past 12 months, China Yuchai International's return on invested capital is 0.00, and its cost of capital is 7.56. The historical ROIC vs WACC comparison of China Yuchai International is shown below:

China Yuchai International Stock Shows Every Sign Of Being Fairly Valued
China Yuchai International Stock Shows Every Sign Of Being Fairly Valued

To conclude, the stock of China Yuchai International (NYSE:CYD, 30-year Financials) gives every indication of being fairly valued. The company's financial condition is poor and its profitability is fair. Its growth ranks in the middle range of the companies in Industrial Products industry. To learn more about China Yuchai International stock, you can check out its 30-year Financials here.

To find out the high quality companies that may deliever above average returns, please check out GuruFocus High Quality Low Capex Screener.

This article first appeared on GuruFocus.

Recommended Stories

  • Kim Jong-un warns of crisis similar to deadly 90s famine

    Human rights groups say the country is facing dire food shortages and economic instability.

  • Sexual health: 'I can't tell my mum I'm having sex'

    In conservative Singapore, start-ups give young adults discreet access to sexual health products.

  • Hunter Biden Fires Back at ‘Comical’ Donald Trump Jr. on ‘Kimmel’

    ABCJimmy Kimmel took a break from roasting his most-despised presidential offspring on Thursday to welcome the son of the current president on his late-night show for a friendly, sympathetic, and occasionally hilarious conversation.Hunter Biden, who weathered the onslaught of attacks hurled his way before, during, and after the 2020 election, and somehow managed to come out stronger, dropped by Jimmy Kimmel Live in person this week to promote his revealing new memoir, Beautiful Things.“You know how Donald Trump was always asking where Hunter is?” Kimmel asked in his opening monologue. “Well, he’s here in our building. He’s been here the whole time, it turns out.”After introducing Biden as “probably the most famous board member of a Ukrainian energy company of all time,” the host told him, “After reading this book, I’m impressed that you are alive.”“Yeah, it was a journey, but thank God I made it through,” Biden replied. When Kimmel joked that the book may have inadvertently taught him how to find and smoke crack, Biden added, “I hope that wasn’t the message that you took from the book. It’s not a how-to, it’s a please-don’t manual.”Clarifying that unlike the president’s son, he has never smoked crack, Kimmel said, “I do feel like I understand it now. And I did think it was especially interesting when you wrote about the fact that, what happens the first time you use it is something you chase for the rest of the time you use it. It’s never what it was that first time.”Biden explained that he wanted to write his book to “humanize people suffering from addiction.” But the story also serves to humanize himself specifically given the way Trump and other Republicans turned him into some sort of evil caricature over the past several years. One of those Republicans was Sen. Lindsey Graham (R-SC), who Kimmel noted was closer with Joe Biden when they were serving in the Senate together.“When you talk about Lindsey Graham being on television attacking you, he was considered a family friend, he was a friend of your father’s,” Kimmel said, “and how strange it is to see that happen, to see a person do that.”“More than anything, it’s sad,” Biden said with a sigh, referring to his father’s fellow senators as “uncles” whether they were Republican and Democrat. “Politics has become so toxic,” he added. “And I think that the thing that I hope my dad is able to bring back is his genuine desire to take some of that toxicity out again. So I had a deep respect for Senator Graham. And it’s just sad to see the way in which he has decided to, not just attack me, but to approach politics.”Later, Kimmel asked Biden if it makes him “crazy” when he hears someone like Donald Trump Jr. saying that the only reason he’s had any success is because he’s “a Biden” and “because of his last name.”“It is wildly comical,” Biden agreed. “That is putting it lightly.”But when he tried to brush it off by saying he tries not to “spend too much time thinking about it,” Kimmel egged him on, saying, “I do, I think about it all the time.”Pressed on whether he has ever met Donald Trump Jr., Biden bizarrely replied, “Not that I know of,” adding, “but I’ve been in some pretty rough places.”Read more at The Daily Beast.Get our top stories in your inbox every day. Sign up now!Daily Beast Membership: Beast Inside goes deeper on the stories that matter to you. Learn more.

  • Filipino man dies after being forced to perform hundreds of squats for breaking COVID-19 curfew near Manila

    Philippine authorities are investigating the death of a man forced to perform nearly 300 squats after officials say he broke COVID-19 curfew rules.

  • The sudden visit to COVID victims' families that sparked Jordan's royal rift

    AMMAN (Reuters) -When Prince Hamza visited the relatives of COVID-19 patients who died after a hospital ran out of oxygen, he triggered a rift in Jordan's monarchy that has shaken the country's reputation as a stable country in a volatile region. The March 14 visit to the city of Salt was, in the words of a senior establishment figure, the "straw that broke the camel's back", coming as it did hours after King Abdullah had visited the hospital and publicly scolded management for the nine deaths. Hamza made the trip to console the bereaved six days before Prince Hussein went to the city to do the same, a move that some officials said had upstaged his younger rival for the throne.

  • The 5 best Amazon deals you can get this Thursday

    Amazon deals to shop this Thursday range from a relaxing back massager and a powerful shower head to a pair of MPow headphones that can go underwater.

  • EXPLAINER: Starving for more chips in a tech-hungry world

    As the U.S. economy rebounds from its pandemic slump, a vital cog is in short supply: the computer chips that power a wide range of products that connect, transport and entertain us in a world increasingly dependent on technology. It has made it difficult for schools to buy enough laptops for students f orced to learn from home, delayed the release of popular products such as the iPhone 12 and created mad scrambles to find the latest video game consoles such as the PlayStation 5. On Thursday, General Motors and Ford said they would further cut production at their North American factories as the global shortage of semiconductors appears to be growing tighter.

  • Yemeni terror suspects caught crossing border into US from Mexico

    GOP Rep. Dan Bishop joins 'Your World' to discuss the national security crisis at the border

  • Britain reassures on AstraZeneca after advising under-30s take other vaccines

    British officials and ministers sought to shore up confidence in AstraZeneca's COVID-19 vaccine on Thursday, saying advice that most people under 30 should be offered alternative shots was not unusual and would not impact the pace of rollout. A pharmacist whose brother died from a brain blood clot linked to the AstraZeneca shot was among those calling for people to keep getting it, saying the doses would save lives. Anthony Harnden, Deputy Chairman of the Joint Committee on Vaccination and Immunisation (JCVI) which issued the new advice, said such suggestions were not unusual, pointing out that people of different ages already got different flu shots in Britain.

  • Evidence of race indoctrination in Virginia classrooms is clear, Loudoun County parent says

    Loudoun County parent Scott Mineo, who runs Parents Against Critical Theory, shares what he's uncovered on 'Fox & Friends.'

  • Report: Matt Gaetz paid associate $900, who then gave $900 to 3 young women

    In May 2018, on the day after Rep. Matt Gaetz (R-Fla.) sent $900 to his associate, former Florida tax collector Joel Greenberg, via Venmo, Greenberg used the app to send three young women payments amounting to $900, The Daily Beast reports. Gaetz paid Greenberg over two transactions. The first had "Test" written in the memo field, and the second said "hit up ____," with the blank being the nickname for one of the recipients. (Because the young woman had only recently turned 18 at the time of the transaction, The Daily Beast is not naming her.) In the Venmo payments he made to the young women, Greenberg wrote that the money was for "Tuition," "School," and "School." Last week, The New York Times reported that Gaetz, 38, was the subject of a Justice Department inquiry into whether he had sex with a 17-year-old girl and paid for her to travel out of state with him. This investigation reportedly stemmed from a probe into Greenberg, who has been charged with sex trafficking of a minor, bribery, and stalking. Court documents say Greenberg was "engaged in 'sugar daddy' relationships," and the Times has reported investigators believe Gaetz paid for sex with several women he met through Greenberg. Gaetz's list of Venmo transactions had been public before this week, The Daily Beast reports, and someone sent the outlet partial Venmo records for Greenberg. The records show that both men are connected on Venmo to the young woman The Daily Beast is not naming, as well as a woman Greenberg paid with taxpayer funds using a government-issued credit card, The Daily Beast reports. During a hearing on Thursday, both Greenberg's attorney and prosecutors said it is likely Greenberg will strike a plea deal, an indication that he will probably cooperate with prosecutors. After the hearing, Greenberg's attorney told reporters, "I am sure Matt Gaetz is not feeling very comfortable today." Gaetz has confirmed the investigation is taking place, but denies having sex with a 17-year-old girl or paying for sex. He has not been charged with any crimes. Read more at The Daily Beast. More stories from theweek.comMatt Gaetz's office released a statement from his 'women' staffers. No actual women are named in the letter.America's bipolar summerSen. Joe Manchin says Jan. 6 Capitol riot 'changed me,' making him more committed to bipartisanship

  • Sidney Powell's defense in the $1.3 billion Dominion lawsuit may be used against her in Michigan sanctions effort

    Michigan is seeking sanctions against Powell after she claimed that "no reasonable person" would have taken her election-fraud claims as fact.

  • California man accused of killing wife, propping up body on Christmas is now convicted

    The man is accused of propping up his dead wife’s body while their kids opened presents.

  • 104-year-old Colombian beats COVID for second time

    A woman more than a century old received cheers from hospital staff in Tunja, Colombia this week after she recovered from the coronavirus for the second time. 104-year-old Carmen Hernandez was discharged after 21 days in the hospital fighting the deadly infection – again.Gina Gomez is a nurse at Hernandez’s care facility."She is an elderly patient with an excellent physical capacity because she resisted the virus for the second time. The first time she was isolated in her nursing home. This time we have the support of the Canelones Clinic. Thank God she has done very well, and she has beaten this virus."The centenarian’s first infection was in June last year.She received her first dose of the Sinovac coronavirus vaccine in February, and then tested positive for COVID-19 for a second time in March.Yamit Noe Hurtado is the manager at San Rafael De Tunja University hospital:"Our doctors classified the case as a re-infection. Fortunately, she recovered quite well. It was a solid work of the scientific team and respiratory therapy team. We are claiming victory."Hernandez returned to her nursing home where the COVID-19 hero will soon receive her second dose of the vaccine after it was delayed due to her reinfection.

  • Matt Gaetz is also reportedly under scrutiny over alleged Florida 'ghost' candidate skulduggery

    The federal investigation of Rep. Matt Gaetz (R-Fla.), said to center on possible sex-trafficking violations and sex with a 17-year-old girl, has branched out to include a trip to the Bahamas with well-connected GOP allies and allegedly paid female companies plus whether Gaetz was involved in running a third-party "ghost" candidate in a state Senate race to help an associate, The New York Times reports. Gaetz has denied paying for sex or having sex with a 17-year-old girl, but his alleged partner in procuring women for sex, Joel Greenberg, is now expected to plead guilty and potentially flip on Gaetz, Greenberg's lawyer and federal prosecutors suggested Thursday. One congressional Republican, Rep. Adam Kinzinger (R-Wash.), has called on Gaetz to resign, and Gaetz's legislative director, Devin Murphy, abruptly quit last week, the Times reports. Investigators are in the early states of their inquiry into whether Gaetz worked with prominent Florida lobbyist Chris Dorworth to put a sham third-party candidate in a state Senate race to help a Gaetz associate, Jason Brodeur, beat a Democratic rival for an open seat, the Times reports. Recruiting a "ghost" candidate to swing a race against an opponent is generally legal, but secretly paying them to do so is frowned upon, legally speaking. In Brodeur's case, a third candidate did run but barely campaigned, and fliers depicted her as a Democrat, like Brodeur's opponent. Brodeur ultimately raised more than $3 million for the race and won by 7,600 votes; the third-party candidate, Jestine Iannotti, got 6,000 votes. Brodeur told the Times through a spokeswoman he had nothing to do with the Iannotti fliers and Dorworth said he never met, communicated with, or paid Iannotti, and doesn't recall discussing running a third-party candidate with Gaetz. "A ghost candidate scheme would be brazen even in Florida, which has been fertile ground for unseemly political ploys," the Times reports, though two little-known third-party candidates in Miami races last election did help Republicans win and keep control of the state Senate. "In one of the Miami races, which was decided by 32 votes, an accused ghost candidate and a campaign backer have been indicted on campaign finance charges." More stories from theweek.comMatt Gaetz's office released a statement from his 'women' staffers. No actual women are named in the letter.America's bipolar summerSen. Joe Manchin says Jan. 6 Capitol riot 'changed me,' making him more committed to bipartisanship

  • John Boehner recalls Trump berating a staffer as an 'idiot' and shouting at him to 'f---ing listen!'

    In another excerpt from his upcoming book, former House Speaker John Boehner writes that he'd "never seen anybody treat a staffer" like former President Donald Trump once did. Boehner will release his memoir On the House next week, and on Thursday, Punchbowl News published an excerpt in which Boehner recalls once golfing with two insurance executives and Trump before he was elected president. The former Republican leader says that as the group was getting ready to play, Trump asked a young staffer of Boehner's, who they called BJ, for the names of the two executives, and the staffer said, "I think they're Joe and Jeff." This turned out to not be correct, and when Trump and Boehner discovered they had been repeatedly calling the executives by the wrong names, the future president was allegedly quite upset. "He marched over to BJ and got right in his face to the point that BJ might have had to take a step or two back," Boehner writes. "Then Trump shouted, 'What are you, some kind of idiot?' He pointed to the rest of our impromptu foursome. 'These guys’ names are Mike and David!'" Boehner goes on to write that Trump shouted at the staffer, "You want to know how to remember somebody’s name? You f---ing LISTEN!" Though Boehner says that "we laughed about that at the time, and since," he adds that "I'd never seen anybody treat a staffer like that," and he suggests that there was "something dark" about this incident. "This was real anger, over something very, very small," Boehner writes. "We had no idea then what that anger would do to our country." The new excerpt from Boehner's book comes after The New York Times published quotes from it in which the former Republican leader rips into Trump, saying he incited a "bloody insurrection for nothing more than selfish reasons" while calling his election fraud claims "bulls---." More stories from theweek.comMatt Gaetz's office released a statement from his 'women' staffers. No actual women are named in the letter.America's bipolar summerSen. Joe Manchin says Jan. 6 Capitol riot 'changed me,' making him more committed to bipartisanship

  • George Floyd's breathing was so restricted that it was almost as if his lung had been removed, expert says

    Derek Chauvin and two fellow Minneapolis police officers had restricted George Floyd's breathing so severely that it was almost “as if a surgeon had gone in and removed” his lung, Dr. Martin Tobin testified Thursday at Chauvin's trial.

  • Khloe Kardashian: Pressure and ridicule over image 'too much to bear'

    Reality TV star Khloe Kardashian explains why she tried to get an unfiltered photo taken off the web.

  • Iran frees South Korean ship it held amid dispute over funds

    A South Korean oil tanker held for months by Iran amid a dispute over billions of dollars seized by Seoul was freed and sailed away early Friday, just hours ahead of further talks between Tehran and world powers over its tattered nuclear deal. MarineTraffic.com data showed the MT Hankuk Chemi leaving Bandar Abbas in the early morning hours. The ministry says the Hankuk Chemi left an Iranian port at around 6 a.m. local time after completing an administrative process.

  • 'The Wire' creator David Simon calls Piers Morgan an 'empty parasite' in Twitter feud

    Simon criticized Morgan for his appearance on Tucker Carlson's Fox Nation show, and Morgan shot back by insulting "The Wire."