CHINA YUCHAI INTL LTD (CYD) Stock Fundamental Analysis
NYSE:CYD - New York Stock Exchange, Inc. - BMG210821051 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to CYD. CYD was compared to 127 industry peers in the Machinery industry. CYD has a bad profitability rating. Also its financial health evaluation is rather negative. CYD has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CYD was profitable.
In the past year CYD had a positive cash flow from operations.
CYD had positive earnings in each of the past 5 years.
CYD had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
CYD's Return On Assets of 1.19% is on the low side compared to the rest of the industry. CYD is outperformed by 63.78% of its industry peers.
CYD has a Return On Equity of 3.52%. This is in the lower half of the industry: CYD underperforms 62.20% of its industry peers.
CYD has a Return On Invested Capital of 3.31%. This is in the lower half of the industry: CYD underperforms 65.35% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CYD is significantly below the industry average of 10.54%.
The 3 year average ROIC (3.11%) for CYD is below the current ROIC(3.31%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.19% | ||
| ROE | 3.52% | ||
| ROIC | 3.31% |
ROA(3y)1.07%
ROA(5y)1.28%
ROE(3y)3.02%
ROE(5y)3.64%
ROIC(3y)3.11%
ROIC(5y)3.67%
1.3 Margins
The Profit Margin of CYD (1.69%) is worse than 62.20% of its industry peers.
CYD's Profit Margin has declined in the last couple of years.
CYD has a Operating Margin of 3.12%. This is in the lower half of the industry: CYD underperforms 68.50% of its industry peers.
CYD's Operating Margin has declined in the last couple of years.
CYD has a Gross Margin of 14.73%. This is amonst the worse of the industry: CYD underperforms 80.31% of its industry peers.
In the last couple of years the Gross Margin of CYD has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.12% | ||
| PM (TTM) | 1.69% | ||
| GM | 14.73% |
OM growth 3Y9.06%
OM growth 5Y-9.85%
PM growth 3Y9.6%
PM growth 5Y-12.85%
GM growth 3Y2%
GM growth 5Y-3.09%
2. Health
2.1 Basic Checks
CYD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CYD has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, CYD has about the same amount of shares outstanding.
The debt/assets ratio for CYD has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.74, we must say that CYD is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.74, CYD is not doing good in the industry: 71.65% of the companies in the same industry are doing better.
CYD has a debt to FCF ratio of 6.14. This is a slightly negative value and a sign of low solvency as CYD would need 6.14 years to pay back of all of its debts.
CYD has a Debt to FCF ratio (6.14) which is in line with its industry peers.
CYD has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of CYD (0.07) is better than 77.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 6.14 | ||
| Altman-Z | 1.74 |
ROIC/WACC0.51
WACC6.44%
2.3 Liquidity
CYD has a Current Ratio of 1.55. This is a normal value and indicates that CYD is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.55, CYD is not doing good in the industry: 73.23% of the companies in the same industry are doing better.
A Quick Ratio of 1.20 indicates that CYD should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.20, CYD is in line with its industry, outperforming 45.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.52% over the past year.
CYD shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.91% yearly.
The Revenue has been growing slightly by 6.02% in the past year.
CYD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.21% yearly.
EPS 1Y (TTM)15.52%
EPS 3Y7.45%
EPS 5Y-10.91%
EPS Q2Q%-16.41%
Revenue 1Y (TTM)6.02%
Revenue growth 3Y-3.46%
Revenue growth 5Y1.21%
Sales Q2Q%-0.54%
3.2 Future
CYD is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.04% yearly.
Based on estimates for the next years, CYD will show a small growth in Revenue. The Revenue will grow by 5.99% on average per year.
EPS Next Y16.44%
EPS Next 2Y3.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.03%
Revenue Next 2Y5.99%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 27.29 indicates a quite expensive valuation of CYD.
CYD's Price/Earnings is on the same level as the industry average.
CYD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.84.
A Price/Forward Earnings ratio of 19.18 indicates a rather expensive valuation of CYD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CYD is on the same level as its industry peers.
CYD's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.29 | ||
| Fwd PE | 19.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CYD is valued cheaper than 81.89% of the companies in the same industry.
66.93% of the companies in the same industry are more expensive than CYD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.65 | ||
| EV/EBITDA | 9.67 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.66
PEG (5Y)N/A
EPS Next 2Y3.04%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CYD has a Yearly Dividend Yield of 3.20%. Purely for dividend investing, there may be better candidates out there.
CYD's Dividend Yield is rather good when compared to the industry average which is at 1.86. CYD pays more dividend than 91.34% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, CYD pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
5.2 History
The dividend of CYD decreases each year by -15.64%.
CYD has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of CYD decreased recently.
Dividend Growth(5Y)-15.64%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
31.58% of the earnings are spent on dividend by CYD. This is a low number and sustainable payout ratio.
DP31.58%
EPS Next 2Y3.04%
EPS Next 3YN/A
30.57
+0.27 (+0.89%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners14.9%
Inst Owner Change16.89%
Ins Owners0.16%
Ins Owner ChangeN/A
Market Cap1.15B
Analysts45
Price Target17.95 (-41.28%)
Short Float %2.92%
Short Ratio1.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
Yearly Dividend0.35
Dividend Growth(5Y)-15.64%
DP31.58%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.29 | ||
| Fwd PE | 19.18 | ||
| P/S | 0.43 | ||
| P/FCF | 19.65 | ||
| P/OCF | 10.57 | ||
| P/B | 0.9 | ||
| P/tB | 1.14 | ||
| EV/EBITDA | 9.67 |
EPS(TTM)1.12
EY3.66%
EPS(NY)1.59
Fwd EY5.21%
FCF(TTM)1.56
FCFY5.09%
OCF(TTM)2.89
OCFY9.46%
SpS71.03
BVpS34.03
TBVpS26.89
PEG (NY)1.66
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.19% | ||
| ROE | 3.52% | ||
| ROCE | 4.32% | ||
| ROIC | 3.31% | ||
| ROICexc | 3.31% | ||
| ROICexgc | 3.85% | ||
| OM | 3.12% | ||
| PM (TTM) | 1.69% | ||
| GM | 14.73% | ||
| FCFM | 2.19% |
ROA(3y)1.07%
ROA(5y)1.28%
ROE(3y)3.02%
ROE(5y)3.64%
ROIC(3y)3.11%
ROIC(5y)3.67%
ROICexc(3y)3.72%
ROICexc(5y)5.49%
ROICexgc(3y)4.55%
ROICexgc(5y)6.9%
ROCE(3y)4.06%
ROCE(5y)4.78%
ROICexcg growth 3Y-18.29%
ROICexcg growth 5Y-16.34%
ROICexc growth 3Y-14.81%
ROICexc growth 5Y-16.9%
OM growth 3Y9.06%
OM growth 5Y-9.85%
PM growth 3Y9.6%
PM growth 5Y-12.85%
GM growth 3Y2%
GM growth 5Y-3.09%
F-Score7
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 6.14 | ||
| Debt/EBITDA | 0.6 | ||
| Cap/Depr | 70.18% | ||
| Cap/Sales | 1.88% | ||
| Interest Coverage | 7.96 | ||
| Cash Conversion | 70.18% | ||
| Profit Quality | 129.72% | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 1.74 |
F-Score7
WACC6.44%
ROIC/WACC0.51
Cap/Depr(3y)60.7%
Cap/Depr(5y)80.04%
Cap/Sales(3y)1.96%
Cap/Sales(5y)2.28%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.52%
EPS 3Y7.45%
EPS 5Y-10.91%
EPS Q2Q%-16.41%
EPS Next Y16.44%
EPS Next 2Y3.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.02%
Revenue growth 3Y-3.46%
Revenue growth 5Y1.21%
Sales Q2Q%-0.54%
Revenue Next Year1.03%
Revenue Next 2Y5.99%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-2.13%
EBIT growth 3Y5.29%
EBIT growth 5Y-8.76%
EBIT Next Year78.81%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-57.59%
FCF growth 3YN/A
FCF growth 5Y-12.86%
OCF growth 1Y-36.46%
OCF growth 3Y15.58%
OCF growth 5Y-13.22%