China Shenhua Energy Company (CSUAY) AI Stock Analysis

• Market Cap: $118.05B
• Dividend Yield: 8.22%
• Average Volume (3M): 493.00
• Price to Earnings (P/E): 14.1
• 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: 0.77
• Enterprise Value/Revenue: 0.39
• Enterprise Value/Gross Profit: 1.10
• Enterprise Value/Ebitda: 1.46
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $19.50 ▼(-7.19% Downside)

China Shenhua Energy Company scores well due to its strong financial performance, characterized by high profitability and low leverage. The technical analysis indicates bullish momentum, though overbought signals suggest caution. The valuation is attractive with a solid dividend yield, enhancing the stock's appeal for income-focused investors.

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

China Shenhua Energy Company exhibits strong financial health with solid profitability, a stable balance sheet, and adequate cash flow management. The company maintains high margins and low leverage, positioning it well for future growth in the coal industry. However, there is room for improvement in cash flow efficiency to enhance financial flexibility.

Income Statement

China Shenhua Energy Company demonstrates strong profitability with a consistent gross profit margin and net profit margin. The TTM gross profit margin is approximately 33.18%, and the net profit margin stands at 17.32%. Although there is a slight decline in revenue from the previous year, the company maintains a solid EBIT margin of 25.74% and an EBITDA margin of 28.02%, reflecting efficient operations despite revenue fluctuations.

Balance Sheet

The balance sheet of China Shenhua Energy is robust, with a low debt-to-equity ratio of 0.08, indicating minimal leverage and financial stability. The equity ratio is a healthy 64.42%, showcasing a strong capital structure. Return on Equity (ROE) is 12.64%, reflecting effective utilization of shareholder equity to generate profits.

Cash Flow

Cash flow analysis indicates a decline in operating cash flow from the previous period, affecting free cash flow growth. The operating cash flow to net income ratio is 1.04, which is decent, showing that operational cash generation is aligned with net income. However, free cash flow to net income ratio is slightly lower at 0.89, suggesting a need for improvement in free cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	233.07B	338.38B	324.69B	344.53B	335.22B	233.26B
Gross Profit	82.28B	115.18B	103.99B	134.47B	110.76B	94.24B
EBITDA	61.96B	111.23B	108.57B	117.56B	101.48B	81.72B
Net Income	39.29B	58.67B	59.69B	69.65B	50.08B	39.17B
Balance Sheet
Total Assets	90.81B	658.07B	630.13B	621.70B	607.05B	558.45B
Cash, Cash Equivalents and Short-Term Investments	17.57B	159.72B	150.28B	170.50B	162.89B	127.46B
Total Debt	4.97B	31.00B	36.87B	56.94B	65.41B	63.88B
Total Liabilities	22.00B	154.12B	151.76B	162.46B	161.38B	133.32B
Stockholders Equity	58.88B	426.87B	408.69B	393.85B	376.88B	360.19B
Cash Flow
Free Cash Flow	15.99B	56.32B	52.60B	81.05B	70.71B	60.62B
Operating Cash Flow	48.71B	93.35B	89.69B	109.73B	94.58B	81.29B
Investing Cash Flow	-51.67B	-85.36B	-36.97B	-56.59B	-6.84B	32.05B
Financing Cash Flow	-22.51B	-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: Negative
• RSI: Neutral
• STOCH: Negative

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 above the 20-day moving average (MA) of 20.13, above the 50-day MA of 20.72, and above the 200-day MA of 17.75, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 61.63 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, 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
ARLP	72 Outperform	$3.09B	12.88	13.07%	11.05%	-9.45%	-46.37%
CSUAY	71 Outperform	$118.05B	14.14	14.02%	8.22%	-13.67%	-15.23%
HCC	69 Neutral	$5.03B	145.23	1.67%	0.36%	-23.25%	-90.78%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
BTU	61 Neutral	$3.99B	-113.22	-0.87%	0.96%	-7.21%	-106.39%
AMR	59 Neutral	$3.12B	-64.71	-2.87%	―	-32.53%	-112.77%
METC	54 Neutral	$1.27B	-34.73	-7.40%	2.83%	-16.99%	-184.02%