China Shenhua Energy Company (CSUAY) AI Stock Analysis

• Market Cap: $112.97B
• Dividend Yield: 8.22%
• Average Volume (3M): 493.00
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.11
• Revenue Growth: -13.67%
• EPS Growth: -15.23%
• Country: US
• Employees: 83,351
• Sector: Energy
• Sector Strength: 52
• Industry: Coal
• EPS (TTM): 0.41
• Shares Outstanding: 844,370,500
• 10 Day Avg. Volume: 412
• 30 Day Avg. Volume: 493
• PEG Ratio: -6.35
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 1.84
• P/FCF Ratio: 11.03
• Enterprise Value/Market Cap: 7.35
• Enterprise Value/Revenue: 2.79
• Enterprise Value/Gross Profit: 8.08
• Enterprise Value/Ebitda: 10.33
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $24.00 ▲(14.23% Upside)

The score is driven primarily by solid underlying financial strength (high margins and low leverage) but tempered by a clear near-term downturn in revenue and free cash flow. Technicals add support with price above major moving averages and positive MACD, while valuation is helped by a moderate P/E and a very high dividend yield.

Positive Factors

Strong Financial Health

The company's strong financial health, characterized by high profitability and low leverage, positions it well for sustained growth and stability in the coal industry.

Low Leverage

Minimal leverage enhances financial stability and flexibility, allowing the company to navigate market fluctuations and invest in growth opportunities without significant debt burden.

High Profit Margins

High profit margins indicate efficient operations and strong pricing power, which can support sustained profitability even amidst revenue fluctuations.

Negative Factors

Decline in Revenue

A decline in revenue could signal challenges in market demand or competitive pressures, potentially impacting long-term growth prospects if not addressed.

Decline in Operating Cash Flow

Reduced operating cash flow can constrain the company's ability to fund operations and growth initiatives, highlighting the need for improved cash flow management.

Revenue Growth Decline

Negative revenue growth suggests potential market challenges or declining demand, which could hinder long-term expansion and profitability if trends persist.

China Shenhua Energy Company Business Overview & Revenue Model

Company Description

China Shenhua Energy Company Limited and its subsidiaries engage in the production and sales of coal and power; railway, port, and shipping transportation; and coal-to-olefins businesses in the People's Republic of China and internationally. It operates through six segments: Coal, Power, Railway, Port, Shipping, and Coal Chemical. The Coal segment produces coal from surface and underground mines; and sells coal to power plants, metallurgical and coal chemical producers, and provincial/regional electric grid companies. As of December 31, 2021, this segment had the recoverable coal reserves of 14.15 billion tones. The Power segment generates electric power through thermal, wind, water, and gas; and sells electric power to power grid companies. The Railway segment provides railway transportation services. The Port segment offers loading, transportation, and storage services. The Shipping segment provides shipment transportation services. The Coal Chemical segment produces and sells methanol; and polyethylene and polypropylene, as well as other by-products. The company was incorporated in 2004 and is based in Beijing, the People's Republic of China. China Shenhua Energy Company Limited is a subsidiary of China Energy Investment Corporation Limited.

How the Company Makes Money

China Shenhua Energy generates revenue through multiple key streams. The primary source is the sale of coal, with a significant focus on thermal coal used for electricity generation. The company also earns substantial income from its power generation segment, operating a number of coal-fired and renewable energy power plants. Additionally, revenue is derived from transportation services, as Shenhua operates a vast railway network that facilitates the efficient transport of coal from mines to customers. The company benefits from long-term contracts and partnerships with various utility companies and industrial clients, ensuring a steady demand for its products. Economic factors, regulatory policies related to energy consumption, and market demand for coal and electricity significantly influence its earnings.

China Shenhua Energy Company Financial Statement Overview

Summary

Strong profitability (TTM gross ~35%, operating ~26%, net ~18%) and a conservatively levered balance sheet (TTM debt-to-equity ~0.08) support resilience. However, near-term fundamentals are weakening with TTM revenue down ~24% and free cash flow down sharply (about -58% growth), indicating cyclical pressure and weaker cash conversion.

Income Statement

Profitability remains strong, with TTM (Trailing-Twelve-Months) gross margin (~35%), operating margin (~26%), and net margin (~18%) broadly consistent with prior years. However, the near-term trajectory has weakened materially: TTM (Trailing-Twelve-Months) revenue is down ~24% versus the prior period, and profits have also stepped down from the 2022–2024 run-rate, highlighting cyclicality and earnings sensitivity to coal/energy pricing.

Balance Sheet

The balance sheet looks conservatively levered with low debt relative to equity (debt-to-equity ~0.07–0.17 historically; ~0.08 in TTM (Trailing-Twelve-Months)), supporting resilience through commodity cycles. Returns on equity are solid (low-to-mid teens across the period), though not accelerating, and the main risk is less leverage-driven and more tied to operating cyclicality rather than balance-sheet stress.

Cash Flow

Cash generation has been strong in most annual periods, with operating cash flow generally covering reported earnings and free cash flow representing a meaningful share of net income. That said, TTM (Trailing-Twelve-Months) shows a clear deterioration: free cash flow is down sharply (about -58% growth) and free cash flow is less than half of net income, indicating weaker cash conversion and/or higher spending needs versus the prior year.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	297.24B	338.38B	324.69B	344.53B	335.22B	233.26B
Gross Profit	102.75B	115.18B	103.99B	134.47B	110.76B	94.24B
EBITDA	80.34B	111.23B	108.57B	117.56B	101.48B	81.72B
Net Income	51.82B	58.67B	59.69B	69.65B	50.08B	39.17B
Balance Sheet
Total Assets	646.57B	658.07B	630.13B	621.70B	607.05B	558.45B
Cash, Cash Equivalents and Short-Term Investments	125.09B	159.72B	150.28B	170.50B	162.89B	127.46B
Total Debt	35.41B	31.00B	36.87B	56.94B	65.41B	63.88B
Total Liabilities	156.65B	154.12B	151.76B	162.46B	161.38B	133.32B
Stockholders Equity	419.20B	426.87B	408.69B	393.85B	376.88B	360.19B
Cash Flow
Free Cash Flow	30.00B	56.32B	52.60B	81.05B	70.71B	60.62B
Operating Cash Flow	66.57B	93.35B	89.69B	109.73B	94.58B	81.29B
Investing Cash Flow	-43.67B	-85.36B	-36.97B	-56.59B	-6.84B	32.05B
Financing Cash Flow	-74.84B	-51.17B	-76.13B	-78.73B	-43.73B	-42.08B

China Shenhua Energy Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSUAY, the sentiment is Positive. The current price of 21.01 is below the 20-day moving average (MA) of 21.30, above the 50-day MA of 20.68, and above the 200-day MA of 18.35, indicating a bullish trend. The MACD of 0.29 indicates Positive momentum. The RSI at 58.14 is Neutral, neither overbought nor oversold. The STOCH value of 25.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CSUAY.

China Shenhua Energy Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSUAY	77 Outperform	$112.97B	13.99	14.02%	8.22%	-13.67%	-15.23%
ARLP	77 Outperform	$3.17B	10.19	16.80%	11.05%	-9.45%	-46.37%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
HCC	61 Neutral	$4.70B	133.80	1.67%	0.36%	-23.25%	-90.78%
BTU	61 Neutral	$4.16B	-121.61	-0.87%	0.96%	-7.21%	-106.39%
METC	56 Neutral	$1.17B	-35.75	-7.40%	2.83%	-16.99%	-184.02%
AMR	54 Neutral	$2.60B	-59.10	-2.87%	―	-32.53%	-112.77%