Weihai Huadong Automation Co (SZSE:002248) GF Value Rank : 8 (As of Jun. 23, 2024)

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What is Weihai Huadong Automation Co GF Value Rank?

Weihai Huadong Automation Co has the GF Value Rank of 8.

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 Weihai Huadong Automation Co's GF Value Rank

For the Specialty Industrial Machinery subindustry, Weihai Huadong Automation 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.

Weihai Huadong Automation Co's GF Value Rank Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Weihai Huadong Automation Co's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Weihai Huadong Automation Co's GF Value Rank falls into.

Weihai Huadong Automation Co GF Value Rank Related Terms

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Weihai Huadong Automation Co (SZSE:002248) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Weihai Huadong Automation Co Ltd (SZSE:002248) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 305 Huoju Road, High Technology Industrial Development Zone, Weihai, Shandong, CHN, 264209

Website

http://www.huadongcnc.com

Weihai Huadong Automation Co Ltd operates in the general equipment manufacturing industry. The company is engaged in an ordinary machine tool manufacturing business. The products of the company include CNC gantry milling and boring machine which include fixed beam fixed column, fixed beam moving a column, and moving beam moving the column, CNC floor boring and milling machine series, CNC vertical lathe, and horizontal machining center.

Executives

Zhao Su Xia	Director
Lian Xiao Ming	Director
Tang Xu Wei	Executives
Liu Xu Hui	Supervisors
Liu Bo Zhe	Director
Tang Shi Xian	Director
Gao He Ming	Executives
Li Zhuang	Directors, executives
Liu Chuan Jin	Executives

Weihai Huadong Automation Co (SZSE:002248) Headlines

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