Bemco Hydraulics (BOM:522650) GF Value Rank : 3 (As of Jun. 21, 2024)

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What is Bemco Hydraulics GF Value Rank?

Bemco Hydraulics has the GF Value Rank of 3.

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 Bemco Hydraulics's GF Value Rank

For the Specialty Industrial Machinery subindustry, Bemco Hydraulics'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.

Bemco Hydraulics's GF Value Rank Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Bemco Hydraulics's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Bemco Hydraulics's GF Value Rank falls into.

Bemco Hydraulics GF Value Rank Related Terms

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Bemco Hydraulics (BOM:522650) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Bemco Hydraulics Ltd (BOM:522650) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

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Address

Udyambag, Industrial Estate, Belgaum, KA, IND, 590 008

Website

https://www.bemcohydraulics.net

Bemco Hydraulics Ltd is an India-based company operating in the manufacturing and sale of hydraulic press machine, portable re-railing equipment, advanced high-performance components, and systems. The company's products are used in heavy engineering works, Aeronautics, defense, Railways, Automobile, forging, and Sheet metal. Its product includes C Frame/Throat Type Presses, Straightening Press, Sheet Metal Forming, Moulding Presses, Baling Presses, SPMs, and Hydraulic Wheel Fitting Presses. The company generates maximum revenue from Portable Re-Railing Equipements.

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