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Guangzhou Echom Sci.&Tech.Co.,Ltd (002420) Fair Value & Analysis

Technology · CN · Market cap 2.4B CNY

GE Guangzhou Echom Sci.&Tech.Co.,Ltd 002420 · SHE
Price¥5.82
Fair Value¥4.57
Upside-21.5%
Quality51/100
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Weak Growth
Thin margins · 6.6% net margin
Low debt · negative free cash flow
Mixed vs. peers (5/12)
Moderate moat 47/100
Evidence: High Range ¥3.14 – ¥9.39 Share as image

Fair value as of: Jul 22, 2026

From 17 valuation models · updated 19 days ago

Share price +8.8% over the past month.

A solid business, but screening 21% overvalued on our models.

What matters now

  • The model range is unusually wide (¥3.14 to ¥9.39). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (51/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥11.10 ¥3.08 Fair Value ¥4.57 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 22, 2026.

How to read this chart

60‑month range ¥3.08 – ¥11.10 · fair‑value band ¥3.14 – ¥9.39 · the ¥5.82 price screens above the ¥4.57 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 22, 2026.

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Analysis

Guangzhou Echom Sci.&Tech.Co.,Ltd (002420) currently trades at ¥5.82, while our model-based Fair Value estimate is ¥4.57, implying the stock looks roughly 21.5% overvalued today. The Quality Score stands at 51/100 (solid quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Guangzhou Echom Sci.&Tech.Co.,Ltd generated revenue of 2.8B CNY at a net margin of 6.6%. Revenue declined 18.4% year over year. It earns a return on equity of 28.1%. Net debt stands at 302M CNY. Fundamentals as of Jul 22, 2026

Our scenario range runs from ¥3.14 (bear case) to ¥9.39 (bull case); at ¥5.82, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 36% below its 52-week high and 7% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -16% fair-value upside, at -21%, 002420 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income ¥3.10 ¥4.50 ¥30.90 76
ROIC Compounder ¥2.22 ¥2.67 ¥3.19 72
Gordon GGM ¥0.2900 ¥0.5800 ¥0.8800 70
All 17 models by family
DCF Models
Owner Earnings ¥6.12 ¥8.81 ¥12.60 31
Earnings-Based
Graham-Dodd ¥3.16 ¥8.45 ¥11.05 54
Lynch FV ¥1.64 ¥2.34 ¥3.04 50
PEG = 1.0 ¥1.64 ¥2.34 ¥3.04 46
EPV ¥2.17 ¥2.46 ¥2.72 59
Dividend Discount
Gordon GGM ¥0.2900 ¥0.5800 ¥0.8800 70
DDM Multi-Stage ¥0.2900 ¥0.4500 ¥0.6000 61
Multiples
P/E Multiple ¥7.68 ¥10.24 ¥12.80 63
P/S Multiple ¥5.93 ¥7.91 ¥9.89 58
P/B Multiple ¥5.63 ¥7.51 ¥9.39 55
EV/EBIT ¥3.40 ¥4.44 ¥5.47 53
EV/EBITDA ¥4.04 ¥5.30 ¥6.55 54
EV/Revenue ¥2.38 ¥3.28 ¥4.18 43
Asset-Based
NCAV (Graham) ¥0.9400 ¥1.26 ¥1.88 50
Economic Profit
Residual Income ¥3.10 ¥4.50 ¥30.90 76
ROIC Compounder ¥2.22 ¥2.67 ¥3.19 72
Growth Earnings
Growth-Adj P/E ¥6.01 ¥8.59 ¥11.17 68

Widest divergence: DCF Models (¥8.81) versus Dividend Discount (¥0.4500). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 2.8B CNY
Revenue growth (YoY) -18.4%
Net margin 6.6%
Return on equity 28.1%
Free cash flow −149M CNY FY2025
P/E ratio 12.2
More key figures
Operating margin 5.5%
EPS (TTM) ¥0.4700
EPS growth (YoY) -15.3%
Net debt 302M CNY FY2025

Figures from reported company fundamentals · as of Jul 22, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 51/100

Of which business quality 47 · Market factors (momentum, volatility) 26

Profitability 56
Margins and returns on capital today
Quality Growth 69
Are margins and returns improving?
Cashflow 2
Earnings quality: real cash, not paper profit
Fin. Strength 40
Balance sheet, leverage, solvency risk
Investment 79
Disciplined investing over empire-building
Low Volatility 54
Calm price path (market factor)
Momentum 14
Price trend over the last 3–12 months (market factor)
52W Momentum 17
Distance to the 52-week high (market factor)
Net Issuance 64
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Guangzhou Echom Sci.&Tech.Co.,Ltd engages in the design, production, and sales of television, white appliance, and automobile structural parts in China and internationally. The company offers interior and exterior, thermal management, and lightweight products; and energy storage system structural components.

Full company description

Guangzhou Echom Sci.&Tech.Co.,Ltd engages in the design, production, and sales of television, white appliance, and automobile structural parts in China and internationally. The company offers interior and exterior, thermal management, and lightweight products; and energy storage system structural components. It also provides healthcare products, including reaction cups, deep hole plates, PCR tubes/plates, virus sampling tubes, microcentrifuge tubes, centrifuge tubes, serum pipettes, serum square bottles, cryopreservation tubes, and cell culture plate, dishes, and flasks, as well as Erlenmeyer flasks. Further, the company offers multi-cavity consumable mold antigen test card bottom cover automated pipette tips, 96 deep hole plate, immune response cup, and quantitative pipette; and robot parts. Guangzhou Echom Sci.&Tech.Co.,Ltd was founded in 1997 and is headquartered in Guangzhou, China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Guangzhou Echom Sci.&Tech.Co.,Ltd reported revenue of ¥3.0B in FY2025 versus ¥3.7B in FY2021, a compound −5.6%/yr. Reported net income was ¥191M in FY2025, compounding +26.7%/yr from FY2021.

Growth Quality 28/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
3.0B CNY
Latest YoY
+10.8%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+3.1%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−0.6%
Avg. growth/yr (18Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+6.0%
Revenue −5.6%/yr
FY21 ¥3.7B
FY22 ¥2.7B
FY23 ¥2.3B
FY24 ¥2.7B
FY25 ¥3.0B
Net income +26.7%/yr
FY21 ¥74.4M
FY22 ¥42.0M
FY23 −¥212M
FY24 ¥94.7M
FY25 ¥191M
Character of growth · EPS growth decomposed (2014-2024) +4.5 % p.a.
Revenue per share −3.4 pp

of which total revenue −3.0 pp · buybacks/dilution −0.5 pp

EBIT margin +28.1 pp
Tax rate −0.2 pp
Residual (interest, one-offs) −19.9 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

002420 screens 21% overvalued. Compare with Apple Inc →

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Cite: Fair Value Calculator (2026). "Guangzhou Echom Sci.&Tech.Co.,Ltd Fair Value". https://www.fairvalue-calculator.com/stock/002420

Peer Group

Consumer Electronics · 129 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 51 · Below median
Fair Value upside −22% · Below median
Return on equity (TTM) 28% · Top 25%
Return on assets 1% · Above median
Net margin (TTM) 7% · Top 25%
Operating margin (TTM) 6% · Above median
Revenue growth -18% · Bottom 25%
Debt / equity 0.09× · Higher than median

Valuation Multiples vs Consumer Electronics median · lower = cheaper

P/E (TTM) 12.2× · Cheaper than 75% of peers
P/B 3.06× · Pricier than 75% of peers
P/S (TTM) 0.83× · Pricier than median
EV/EBITDA 18.3× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 5 · sector 8
FUTURE 0 · sector 13
PAST 100 · sector 10
HEALTH 96 · sector 97
DIVIDEND 0 · sector 29

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Consumer Electronics stocks, each showing price versus our Fair Value estimate (as of Jul 22, 2026).

Stock Price Fair Value vs Fair Value
Apple Inc AAPL $313.33 $122.91 -61%
Samsung Electronics Co 005930 255,000 KRW 138,019 KRW -46%
Sony Group SONYN 366.00 MXN 468.94 MXN +28%
Xiaomi Corporation 1810 HK$26.88 HK$39.84 +48%
LG Electronics Inc 066570 179,000 KRW 101,531 KRW -43%
Sharetronic Data Technology Co 300857 ¥277.96 ¥35.89 -87%
Huaqin Co 603296 ¥78.20 ¥65.69 -16%
Goertek Inc 002241 ¥22.25 ¥18.86 -15%
LG Corp 003550 102,400 KRW 93,881 KRW -8%
Anker Innovations Limited 300866 ¥105.92 ¥78.52 -26%

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Frequently asked questions

Is Guangzhou Echom Sci.&Tech.Co.,Ltd (002420) overvalued or undervalued?
As of Jul 22, 2026, our model estimates a fair value of ¥4.57 versus a price of ¥5.82, about −21% (overvalued).
What is the fair value of 002420?
Our model-based fair value for Guangzhou Echom Sci.&Tech.Co.,Ltd is ¥4.57 (as of Jul 22, 2026), built from audited fundamentals. The current price is ¥5.82.
What is the quality score of 002420?
Guangzhou Echom Sci.&Tech.Co.,Ltd has a Quality Score of 51/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Guangzhou Echom Sci.&Tech.Co.,Ltd (002420)?
Guangzhou Echom Sci.&Tech.Co.,Ltd reported trailing-twelve-month revenue of about 2.8B CNY (latest available figure, as of Jul 22, 2026).
What is the net profit margin of 002420?
The net profit margin of Guangzhou Echom Sci.&Tech.Co.,Ltd is about 6.6%, meaning it keeps roughly 6.6% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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