Sinotruk (Hong Kong) (Sinotruk (Hong Kong)) GF Value Rank : 1 (As of Apr. 27, 2024)

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What is Sinotruk (Hong Kong) GF Value Rank?

Sinotruk (Hong Kong) has the GF Value Rank of 1.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Sinotruk (Hong Kong)'s GF Value Rank

For the Farm & Heavy Construction Machinery subindustry, Sinotruk (Hong Kong)'s GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Sinotruk (Hong Kong)'s GF Value Rank Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Sinotruk (Hong Kong)'s GF Value Rank distribution charts can be found below:

* The bar in red indicates where Sinotruk (Hong Kong)'s GF Value Rank falls into.

Sinotruk (Hong Kong) GF Value Rank Related Terms

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Sinotruk (Hong Kong) (Sinotruk (Hong Kong)) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Farm & Heavy Construction Machinery » Sinotruk (Hong Kong) Ltd (OTCPK:SHKLY) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

SHKLF:USA 03808:Hong Kong 4SK:Germany

Address

No. 777 Hua’ao Road, Sinotruk Tower, Innovation Zone, Gaoxin District, Shandong Province, Ji’nan, CHN, 250101

Website

http://www.sinotruk.com

Sinotruk (Hong Kong) Ltd is an investment holding company. The company manages its business in four segments: Heavy Duty Trucks, which includes manufacture and sale of heavy-duty trucks, medium-heavy duty trucks, and related components; Light Duty Trucks & Others, which manufacture and sell of light-duty trucks, buses, etc. and related components; Engines segment manufactures engines & related parts; and Finance Segment. The vast majority of its revenue comes from the Heavy-duty trucks segment. Its geographical segments are Mainland China and Overseas.

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