Critical Analysis: Anhui Conch Cement (AHCHY) & Its Rivals

Dividends

Anhui Conch Cement pays an annual dividend of $0.66 per share and has a dividend yield of 5.8%. Anhui Conch Cement pays out 61.1% of its earnings in the form of a dividend. As a group, “Construction Materials” companies pay a dividend yield of 177.1% and pay out 31.6% of their earnings in the form of a dividend. Anhui Conch Cement lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional & Insider Ownership

46.6% of shares of all “Construction Materials” companies are owned by institutional investors. 9.9% of shares of all “Construction Materials” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Anhui Conch Cement has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500. Comparatively, Anhui Conch Cement’s peers have a beta of 0.90, meaning that their average share price is 10% less volatile than the S&P 500.

Earnings and Valuation

This table compares Anhui Conch Cement and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Anhui Conch Cement	$11.48 billion	$1.18 billion	10.56
Anhui Conch Cement Competitors	$6.78 billion	$651.37 million	32.10

Anhui Conch Cement has higher revenue and earnings than its peers. Anhui Conch Cement is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Anhui Conch Cement and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Anhui Conch Cement	9.72%	3.86%	3.09%
Anhui Conch Cement Competitors	4.41%	8.31%	5.03%

Summary

Anhui Conch Cement peers beat Anhui Conch Cement on 8 of the 11 factors compared.

Anhui Conch Cement Company Profile

Anhui Conch Cement Company Limited, together with its subsidiaries, manufactures, sells, and trades in clinker and cement products. The company operates through five segments: Eastern China, Central China, Southern China, Western China, and Overseas. It provides construction and installation services for industrial purposes; logistic services; and mining and related services. The company manufactures and sells cement packaging products, concrete products, and refractory materials; and develops and sells profile and related products, as well as exports clinker and cement products. In addition, it engages in investment and trading, and selling aggregates. Anhui Conch Cement Company Limited was founded in 1997 and is based in Wuhu, the People's Republic of China.