China Yuchai is UNDERVALUED at 15.57 per share with modest projections ahead. China Yuchai appears to be not too volatile, given 1 month investment horizon.
China Yuchai Interna secures Sharpe Ratio (or Efficiency) of 0.13, which signifies that the company had 0.13% of return per unit of risk over the last month. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock specific
technical indicators that cannot be
diversified away. We have found twenty-one
technical indicators for China Yuchai International, which you can use to evaluate future volatility of the firm. Please makes use of China Yuchai Interna Mean Deviation of 1.73,
risk adjusted performance of 0.0666, and Downside Deviation of 2.2 to double-check if our risk estimates are consistent with your expectations.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include China Yuchai income statement, its balance sheet, and the statement of cash flows. Potential China Yuchai investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although China Yuchai investors may use each financial statement separately, they are all related. The changes in China Yuchai's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on China Yuchai's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of China Yuchai
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of China Yuchai performance into the future periods or doing a reasonable stock valuation. The intrinsic value of China Yuchai shares is the value that is considered the true value of the share. If
the intrinsic value of China is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares China Yuchai. Please read more on our
fundamental analysis page.
How effective is China Yuchai in utilizing its assets?
China Yuchai International reports assets on its Balance Sheet. It represents the amount of China resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, China Yuchai aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Construction Machinery & Heavy Transportation Equipment space. To get a better handle on how balance sheet or income statements item affect China volatility, please check the breakdown of all its
fundamentals.
Are China Yuchai Earnings Expected to grow?
The
future earnings power of China Yuchai involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of China Yuchai factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. China Yuchai
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of China
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of China Yuchai earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. China Yuchai dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. China one year expected dividend income is about USD0.32 per share.
At present, China Yuchai's
Dividend Payout Ratio is projected to increase slightly based on the last few years of reporting. The current year's
Dividend Paid And Capex Coverage Ratio is expected to grow to 0.23, whereas
Dividend Yield is forecasted to decline to 0.04.
Investing in stocks that pay
dividends, such as stock of China Yuchai International, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in China Yuchai must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for China Yuchai. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
China Yuchai Gross Profit
China Yuchai Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing China Yuchai previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show China Yuchai Gross Profit growth over the last 10 years. Please check China Yuchai's
gross profit and other
fundamental indicators for more details.
Details
Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of China Yuchai is not uncomon. Institutional investor usually refers to an organization that invests money in China Yuchai on behalf of clients or other money managers. Buying and selling of large positions of China Yuchai stock by institutional investors can create supply and demand imbalances that result in sudden price moves of China Yuchai stock. Let's take a look at how the ownership of China is distributed among investors.
Ownership Allocation
China Yuchai holds a total of fourty million eight hundred sixty thousand
outstanding shares. China Yuchai International retains significant amount of outstanding shares owned by
insiders. An
insider is usually defined as a CEO, other corporate executive, director, or
institutional investor who own at least 10% of the company outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Please note that no matter how much assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.
| Retail Investors14.56% | Insiders59.93% | Institutions25.51% |
| Retail Investors | 14.56 |
| Insiders | 59.93 |
| Institutions | 25.51 |
| 2017 | 2018 | 2019 | 2020 (projected) |
Cost of Revenue | 12.84 B | 13.17 B | 14.91 B | 14.89 B | Consolidated Income | 1.32 B | 974.4 M | 860.7 M | 854.46 M |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. China Yuchai has an asset utilization ratio of 24.59 percent. This indicates that the company is making $0.25 for each dollar of assets. An increasing asset utilization means that China Yuchai International is more efficient with each dollar of assets it utilizes for everyday operations.
| Current Assets17 B | Assets Non Current6.5 B | | |
| Current Assets | 17 Billion | 67.65 |
| Assets Non Current | 6.53 Billion | 25.99 |
| Goodwill | 1.18 Billion | 4.68 |
| Tax Assets | 420.55 Million | 1.67 |
China Yuchai is epected to finish above $13.31 in September
The semi deviation is down to 2.11 as of today. China Yuchai International currently demonstrates below-verage downside deviation. It has Information Ratio of -0.05 and Jensen Alpha of -0.04. However, we do advice investors to further question China Yuchai International expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.
Our Conclusion on China Yuchai
Although other entities in the diversified machinery industry are either recovering or due for a correction, China Yuchai may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of China as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to China Yuchai.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of China Yuchai International. Please refer to our
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