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Hengli Petrochemical Co (SHSE:600346) GF Value Rank : 10 (As of Mar. 17, 2025)


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What is Hengli Petrochemical Co GF Value Rank?

Hengli Petrochemical Co has the GF Value Rank of 10.

GF Value Rank evaluates the exclusive GuruFocus valuation and performance of a stock, rated on a scale from 1 to 10. It 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.

A higher score indicates a stock with a relatively low valuation and substantial potential for outperformance. Conversely, a lower score often reflects stocks that are either highly overvalued or deeply undervalued, both of which tend to underperform.

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


Competitive Comparison of Hengli Petrochemical Co's GF Value Rank

For the Chemicals subindustry, Hengli Petrochemical Co'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.


Hengli Petrochemical Co's GF Value Rank Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Hengli Petrochemical Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Hengli Petrochemical Co's GF Value Rank falls into.



Hengli Petrochemical Co GF Value Rank Related Terms

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Hengli Petrochemical Co Business Description

Traded in Other Exchanges
N/A
Address
No. 52 Gangxing Road, Renmin Road Street, Floor 31, Building B, Victoria Plaza, Zhongshan District, Liaoning Province, Dalian, CHN, 116001
Hengli Petrochemical Co Ltd engages in the petrochemical industry. Its principal activities include; the production and sales of chemical fibers; sales of purified terephthalic acid; and import and export of goods. The main products offered by the company are oil refining products, chemical products, PTA, polyester chips, polyester fibers, and films among others. The company mainly operates in three business segments: Petrochemical business segment, Polyester business segment, and Headquarters and other business segments. Maximum revenue is generated from the Petrochemical segment. Geographically, the company earns maximum revenue from overseas markets through exports.
Executives
Wang Shan Shui Director

Hengli Petrochemical Co Headlines

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