Zhengzhou Coal Mining Machinery Group Co (SHSE:601717) GF Value Rank : 5 (As of Jun. 15, 2024)

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What is Zhengzhou Coal Mining Machinery Group Co GF Value Rank?

Zhengzhou Coal Mining Machinery Group Co has the GF Value Rank of 5.

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 Zhengzhou Coal Mining Machinery Group Co's GF Value Rank

For the Farm & Heavy Construction Machinery subindustry, Zhengzhou Coal Mining Machinery Group 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.

Zhengzhou Coal Mining Machinery Group Co's GF Value Rank Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Zhengzhou Coal Mining Machinery Group Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Zhengzhou Coal Mining Machinery Group Co's GF Value Rank falls into.

Zhengzhou Coal Mining Machinery Group Co GF Value Rank Related Terms

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Zhengzhou Coal Mining Machinery Group Co (SHSE:601717) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Farm & Heavy Construction Machinery » Zhengzhou Coal Mining Machinery Group Co Ltd (SHSE:601717) » Definitions » GF Value Rank

Traded in Other Exchanges

00564:Hong Kong ZGC:Germany

Address

No. 167, 9th Street, Econ-Tech Development Zone, Henan Province, Zhengzhou, CHN, 450016

Website

https://www.zmj.com

Zhengzhou Coal Mining Machinery Group Co Ltd is an investment holding company. The company's operating segment includes the Manufacture of coal mining machinery and the Manufacture of auto parts. Geographically, the company operates in The PRC, Germany and other countries.

Executives

Fu Qi	senior management
Jia Hao	Directors, senior managers
Fu Zu Gang	Director
Huang Hua	senior management
Zhang Hai Bin	senior management
Wang Xin Ying	Director
Li Wei Ping	senior management
Zhang Ming Lin	Supervisors
Xiang Jia Yu	Director
Jiao Cheng Yao	Director
Liu Qiang	Director
Xu Ming Kai	Supervisors
Zhou Rong	Supervisors
Wang Yong Qiang	senior management
Guo De Sheng	senior management

Zhengzhou Coal Mining Machinery Group Co (SHSE:601717) Headlines

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