Luzhou Xinglu Water (Group) Co (HKSE:02281) GF Value Rank : 0 (As of Jun. 01, 2024)

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What is Luzhou Xinglu Water (Group) Co GF Value Rank?

Luzhou Xinglu Water (Group) Co has the GF Value Rank of 0.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

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Luzhou Xinglu Water (Group) Co (HKSE:02281) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Luzhou Xinglu Water (Group) Co Ltd (HKSE:02281) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 16, Baizi Road, Jiangyang District, Sichuan Province, Luzhou, CHN

Website

http://www.lzss.com

Luzhou Xinglu Water (Group) Co Ltd is a China-based company engages in the provision of integrated municipal water-related public utility services. The company is engaged in the provision of tap water supply and related installation and maintenance service, wastewater treatment service and construction service. It operates through two main segments the Tap Water Supply and Wastewater Treatment segments. The company derives maximum revenue from Tap Water Supply segment. Geographically, it operates in People's Republic of China.

Executives

Hwabao Trust Co., Ltd	2301 Trustee
Fei Zhanbo	2201 Interest of corporation controlled by you
Xin Tian Zhi Neng Xiang Gang You Xian Gong Si	2101 Beneficial owner
Xin Tian Ke Ji Gu Fen You Xian Gong Si	2201 Interest of corporation controlled by you

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