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CSSC (Hong Kong) Shipping Co (FRA:3LL) GF Value Rank : 0 (As of Dec. 15, 2024)


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What is CSSC (Hong Kong) Shipping Co GF Value Rank?

CSSC (Hong Kong) Shipping Co has the GF Value Rank of 0.

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.


CSSC (Hong Kong) Shipping Co GF Value Rank Related Terms

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CSSC (Hong Kong) Shipping Co Business Description

Traded in Other Exchanges
Address
19 Des Voeux Road Central, Room 1801, 18th Floor, World-wide House, Hong Kong, HKG
CSSC (Hong Kong) Shipping Co Ltd is a shipyard-affiliated leasing company. As a player in the ship leasing industry, it offers customized ship leasing solutions that suit customers' different needs. The core business of the group is the provision of leasing services, which include finance leases and operating leases. It operates through the below segments: Leasing services, Shipbroking services, and Loan borrowings. The Leasing services segment that derives the majority of revenue provides vessel leasing services to the customers with the options of finance lease and operating lease. Geographically, the company generates revenue from customers mainly located in the PRC, Asia, United States, and Europe.

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