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Sinopec Oilfield Service Corporation (600871) Fair Value & Analysis

Energy · CN · Market cap 41.9B CNY

SO Sinopec Oilfield Service Corporation 600871 · SHG
Price¥2.21
Fair Value¥0.4900
Upside-77.8%
Quality47/100
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Mixed Growth
Thin margins · 0.8% net margin
Low debt · generates free cash flow
Mixed vs. peers (6/13)
Narrow moat 27/100
Evidence: High Range ¥0.3600 – ¥0.7400 Share as image

Fair value as of: Aug 8, 2026

From 26 valuation models · updated 2 days ago

Fair value updated Aug 8, 2026, revised from ¥0.4500 to ¥0.4900 (+8.9%) since Jul 5, 2026. Share price +7.3% over the past month.

Below-average quality, and screening another 78% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥0.7400). The favourable scenario is already priced in.
  • Solid but not exceptional quality (47/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (¥0.3600 to ¥0.7400) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥4.27 ¥1.65 Fair Value ¥0.4900 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 8, 2026.

How to read this chart

60‑month range ¥1.65 – ¥4.27 · fair‑value band ¥0.3600 – ¥0.7400 · the ¥2.21 price screens above the ¥0.4900 fair value. Dashed = 300-day average. As of Aug 8, 2026.

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Analysis

Sinopec Oilfield Service Corporation (600871) currently trades at ¥2.21, while our model-based Fair Value estimate is ¥0.4900, implying the stock looks roughly 77.8% overvalued today. The Quality Score stands at 47/100 (below-average quality), in the Energy 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, Sinopec Oilfield Service Corporation generated revenue of 81.1B CNY at a net margin of 0.8%. Revenue grew 2.4% year over year. It earns a return on equity of 6.9%. Net debt stands at 24.8B CNY. Fundamentals as of Aug 8, 2026

Our scenario range runs from ¥0.3600 (bear case) to ¥0.7400 (bull case); at ¥2.21, the current price sits above 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 50% below its 52-week high and 15% above its 52-week low, currently below its 200-day average. For context, the median of 10 Energy peers we cover trades at -45% fair-value upside, at -78%, 600871 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 BearBaseBull Evidence
Highest evidence
Growth DCF ¥2.79 ¥4.65 ¥7.76 80
Residual Income ¥0.4000 ¥0.4300 ¥0.4600 76
Rev-Margin DCF ¥1.64 ¥2.41 ¥3.40 74
All 26 models by family
DCF Models
FCF DCF ¥2.80 ¥4.80 ¥8.21 38
Owner Earnings ¥1.29 ¥2.13 ¥3.55 31
5Y Revenue Exit ¥1.64 ¥2.40 ¥3.38 39
5Y EBITDA Exit ¥1.87 ¥2.87 ¥4.07 41
5Y P/E Exit ¥1.27 ¥1.66 ¥2.05 38
10Y Revenue Exit ¥1.98 ¥2.83 ¥4.02 36
10Y EBITDA Exit ¥2.16 ¥3.17 ¥4.59 37
10Y P/E Exit ¥1.77 ¥2.29 ¥2.92 35
Earnings-Based
Graham-Dodd ¥0.2400 ¥1.04 ¥1.43 54
Lynch FV ¥0.2700 ¥0.3900 ¥0.5000 50
PEG = 1.0 ¥0.2700 ¥0.3900 ¥0.5000 46
EPV ¥0.8700 ¥0.9800 ¥1.08 59
Dividend Discount
Gordon GGM ¥0.3000 ¥0.6300 ¥1.00 70
DDM Multi-Stage ¥0.3000 ¥0.5300 ¥0.6600 61
Multiples
P/E Multiple ¥0.3600 ¥0.4900 ¥0.6100 63
P/S Multiple ¥0.4400 ¥0.5900 ¥0.7400 58
P/B Multiple ¥0.4400 ¥0.5900 ¥0.7400 55
EV/EBIT ¥0.9400 ¥1.19 ¥1.43 53
EV/EBITDA ¥1.53 ¥1.97 ¥2.42 54
EV/Revenue ¥1.10 ¥1.48 ¥1.86 43
Asset-Based
NCAV (Graham) ¥0.2400 ¥0.3300 ¥0.4900 50
Growth DCF
Growth DCF ¥2.79 ¥4.65 ¥7.76 80
Rev-Margin DCF ¥1.64 ¥2.41 ¥3.40 74
Economic Profit
Residual Income ¥0.4000 ¥0.4300 ¥0.4600 76
ROIC Compounder ¥0.9500 ¥1.20 ¥1.50 72
Growth Earnings
Growth-Adj P/E ¥0.3600 ¥0.5200 ¥0.6700 68

Widest divergence: Growth DCF (¥2.41) versus Asset-Based (¥0.3300). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 81.1B CNY
Revenue growth (YoY) +2.4%
Net margin 0.8%
Return on equity 6.9%
Free cash flow 3.9B CNY FY2025
P/E ratio 74.7
More key figures
Operating margin 3.6%
EPS (TTM) ¥0.0300
EPS growth (YoY) -8.3%
Net debt 24.8B CNY FY2025

Figures from reported company fundamentals · as of Aug 8, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 47/100

Of which business quality 45 · Market factors (momentum, volatility) 35

Profitability 33
Margins and returns on capital today
Quality Growth 45
Are margins and returns improving?
Cashflow 52
Earnings quality: real cash, not paper profit
Fin. Strength 8
Balance sheet, leverage, solvency risk
Investment 80
Disciplined investing over empire-building
Low Volatility 60
Calm price path (market factor)
Momentum 23
Price trend over the last 3–12 months (market factor)
52W Momentum 25
Distance to the 52-week high (market factor)
Net Issuance 83
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

Sinopec Oilfield Service Corporation provides integrated petroleum engineering and oilfield technical services in China and internationally.

Full company description

Sinopec Oilfield Service Corporation provides integrated petroleum engineering and oilfield technical services in China and internationally. It offers data acquisition, processing, interpretation to technology research and development, equipment manufacturing, and reservoir service delivering integrated geophysical solutions and support for oil and gas fields; and drilling and completion, drilling technology services, drilling tool manufacturing, and forming proprietary drilling technologies services for petroleum engineering. It also offers pre-drill prediction; real-time acquisition and monitoring; post-drill evaluation for exploration and development; and data acquisition, processing, interpretation, methodology research, and development of instruments and software; reservoir stimulation, oil and gas well testing, workover and sidetracking, technical services, and tailored solutions for domestic and international oil and gas exploration and production; and engages in the provision of feasibility studies; design, procurement, and construction services for onshore and offshore oil and gas fields; long-distance pipeline, oil and gas transporting process, storage and transportation, petrochemical supporting, building construction, water resources and hydropower, ports and waterways, electricity transmission, and distribution projects; LNG projects; and coal chemical engineering, geothermal utilization, energy saving, and municipal roads and bridges, as well as manufacturing of pressure vessels. The company was formerly known as Sinopec Yizheng Chemical Fibre Company Limited and changed its name to Sinopec Oilfield Service Corporation in March 2015. The company was founded in 1993 and is headquartered in Beijing, the People's Republic of China. Sinopec Oilfield Service Corporation is a subsidiary of China Petrochemical Corporation.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Sinopec Oilfield Service Corporation reported revenue of ¥80.7B in FY2025 versus ¥69.5B in FY2021, a compound +3.8%/yr. Reported net income was ¥659M in FY2025, compounding +38.4%/yr from FY2021.

Growth Quality 54/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
80.7B CNY
Latest YoY
−0.5%
Avg. growth/yr (3Y)
+3.0%
Avg. growth/yr (5Y)
+3.5%
Avg. growth/yr (31Y)
+8.6%
Revenue +3.8%/yr
FY21 ¥69.5B
FY22 ¥73.8B
FY23 ¥80.0B
FY24 ¥81.1B
FY25 ¥80.7B
Net income +38.4%/yr
FY21 ¥180M
FY22 ¥476M
FY23 ¥589M
FY24 ¥632M
FY25 ¥659M

600871 screens 78% overvalued. Compare with Noble Corporation →

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Cite: Fair Value Calculator (2026). "Sinopec Oilfield Service Corporation Fair Value". https://www.fairvalue-calculator.com/stock/600871

Peer Group

Oil & Gas Drilling · 31 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 47 · Above median
Fair Value upside −78% · Bottom 25%
Return on equity (TTM) 7% · Above median
Return on assets 2% · Below median
Net margin (TTM) 1% · Below median
Operating margin (TTM) 4% · Bottom 25%
Revenue growth 2% · Above median
Debt / equity 0.12× · Lower than 75% of peers

Valuation Multiples vs Oil & Gas Drilling median · lower = cheaper

P/E (TTM) 73.7× · Pricier than 75% of peers
P/B 4.53× · Pricier than 75% of peers
P/S (TTM) 0.52× · Cheaper than median
P/FCF 1.6× · Cheaper than 75% of peers
EV/EBITDA 7.6× · 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 0 · sector 0
FUTURE 12 · sector 2
PAST 28 · sector 17
HEALTH 94 · sector 84
DIVIDEND 0 · sector 66

VALUE 0: the price sits above our fair-value range.

Values & ESG

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

Oil & gas

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

Similar stocks

10 more Oil & Gas Drilling stocks, each showing price versus our Fair Value estimate (as of Aug 8, 2026).

Stock Price Fair Value vs Fair Value
Noble Corporation NE $41.79 $23.09 -45%
Transocean Ltd RIG $5.14 $2.16 -58%
Valaris Limited VAL $79.57 $63.09 -21%
Patterson-UTI Energy, Inc PTEN $9.39 $12.20 +30%
Helmerich & Payne, Inc HP $34.14 $9.25 -73%
Seadrill Limited SDRL $42.86 $10.17 -76%
Arabian Drilling Company 2381 80.70 SAR 11.09 SAR -86%
Nabors Industries Ltd NBR $84.72 $209.20 +147%
Borr Drilling Limited BORR kr 41.99 kr 27.75 -34%
Sable Offshore Corp SOC $4.14 $1.87 -55%

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Frequently asked questions

Is Sinopec Oilfield Service Corporation (600871) overvalued or undervalued?
As of Aug 8, 2026, our model estimates a fair value of ¥0.4900 versus a price of ¥2.21, about −78% (overvalued).
What is the fair value of 600871?
Our model-based fair value for Sinopec Oilfield Service Corporation is ¥0.4900 (as of Aug 8, 2026), built from audited fundamentals. The current price is ¥2.21.
What is the quality score of 600871?
Sinopec Oilfield Service Corporation has a Quality Score of 47/100. 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 Sinopec Oilfield Service Corporation (600871)?
Sinopec Oilfield Service Corporation reported trailing-twelve-month revenue of about 81.1B CNY (latest available figure, as of Aug 8, 2026).
What is the net profit margin of 600871?
The net profit margin of Sinopec Oilfield Service Corporation is about 0.8%, meaning it keeps roughly 0.8% 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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