China Petroleum & Chemical Corp

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SNP : NYSE : Basic Materials
$71.64 -0.07 | -0.10%
Today's Range: 71.62 - 71.62
Avg. Daily Volume: 111,700
08/25/16 - 9:35 AM ET

Financial Analysis


CHINA PETROLEUM & CHEM CORP's gross profit margin for the first quarter of its fiscal year 2016 has significantly increased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. CHINA PETROLEUM & CHEM CORP has very weak liquidity. Currently, the Quick Ratio is 0.28 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.72% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)64173.3977148.09
EBITDA ($mil)5995.814598.16
EBIT ($mil)2074.6766.41
Net Income ($mil)1033.34350.38


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)9908.3411928.7
Total Assets ($mil)216763.03231658.48
Total Debt ($mil)37971.048744.15
Equity ($mil)106230.15108097.6


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin13.829.79
EBITDA Margin9.345.96
Operating Margin3.230.99
Sales Turnover1.381.85
Return on Assets2.622.4
Return on Equity5.355.15
Debt Q1 FY16 Q1 FY15
Current Ratio0.750.74
Debt/Capital0.260.31
Interest Expense389.11383.77
Interest Coverage5.332.0


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)1210.711182.8
Div / share0.00.0
EPS0.850.29
Book value / share87.7491.39
Institutional Own % n/a n/a
Avg Daily Volume114491.0149373.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 78.53 for the Oil, Gas & Consumable Fuels industry and a discount compared to the S&P 500 average of 25.30. For additional comparison, its price-to-book ratio of 0.83 indicates a significant discount versus the S&P 500 average of 2.83 and a significant discount versus the industry average of 14.60. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, CHINA PETROLEUM & CHEM CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SNP 15.56 Peers 78.53   SNP 2.97 Peers 11.01

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

SNP is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

SNP is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SNP 13.81 Peers 46.04   SNP 0.81 Peers 2.52

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

SNP is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

SNP trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SNP 0.83 Peers 14.60   SNP -1.47 Peers -230.31

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

SNP is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

SNP is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SNP 0.30 Peers 2.62   SNP -30.46 Peers -26.36

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

SNP is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

SNP significantly trails its peers on the basis of sales growth

 

 

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