China Petroleum & Chemical Corp

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SNP : NYSE : Basic Materials
$79.64 up 0.16 | 0.2%
Today's Range: 79.08 - 79.7
Avg. Daily Volume: 110300.0
06/23/17 - 11:40 AM ET

Financial Analysis


CHINA PETROLEUM & CHEM CORP's gross profit margin for the first quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. Even though it increased sales and net income significantly, the company was unable to grow at a faster pace than its industry competitors. CHINA PETROLEUM & CHEM CORP has very weak liquidity. Currently, the Quick Ratio is 0.47 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained unchanged 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 FY17 Q1 FY16
Net Sales ($mil)84580.5764215.42
EBITDA ($mil)7683.645995.04
EBIT ($mil)3723.852069.95
Net Income ($mil)2498.691034.12


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)19620.249908.34
Total Assets ($mil)214858.94216763.03
Total Debt ($mil)27493.4637971.0
Equity ($mil)105678.17106230.15


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin11.9913.82
EBITDA Margin9.089.33
Operating Margin4.43.22
Sales Turnover1.391.38
Return on Assets3.812.63
Return on Equity7.745.36
Debt Q1 FY17 Q1 FY16
Current Ratio0.940.75
Debt/Capital0.210.26
Interest Expense302.77389.11
Interest Coverage12.35.32


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)1210.711210.71
Div / share0.00.0
EPS2.060.85
Book value / share87.2987.74
Institutional Own % n/a n/a
Avg Daily Volume109882.086492.0

Valuation


BUY. CHINA PETROLEUM & CHEM CORP's P/E ratio indicates a significant discount compared to an average of 51.24 for the Oil, Gas & Consumable Fuels industry and a significant discount compared to the S&P 500 average of 25.73. For additional comparison, its price-to-book ratio of 0.93 indicates a significant discount versus the S&P 500 average of 3.08 and a significant discount versus the industry average of 81.35. 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 12.03 Peers 51.24   SNP 3.58 Peers 14.91

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 11.68 Peers 23.97   SNP 0.62 Peers 0.57

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.

 

Average. 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 valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SNP 0.93 Peers 81.35   SNP 44.04 Peers 98.97

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.

 

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

However, SNP is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SNP 0.33 Peers 2.16   SNP -0.15 Peers 6.96

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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