First Tractor Co Ltd (601038) fair value: what the stock is really worth
As of Sep 23, 2026: fair value of First Tractor Co Ltd ¥10.52, price ¥13.89, upside -24.3%, quality 58 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.
How to read this chart
60‑month range ¥8.50 – ¥19.69 · fair‑value band ¥8.05 – ¥13.39 · the ¥13.89 price screens above the ¥10.52 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 24, 2026.
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First Tractor Company Limited, engages in the production, manufacture, and sale of agricultural machinery and power machinery. It offers medium and large-sized wheeled and crawler tractors; transmission series tractors; power shuttle series tractors; shift series tractors; autonomous tractors; and hybrid power tractors.
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First Tractor Company Limited, engages in the production, manufacture, and sale of agricultural machinery and power machinery. It offers medium and large-sized wheeled and crawler tractors; transmission series tractors; power shuttle series tractors; shift series tractors; autonomous tractors; and hybrid power tractors. The company also provides off-road diesel engines, such as tractors and harvesters, engineering machinery, ships, generator sets, and others; and component products, such as castings and forgings, gear transmission components, covers, offroad axles, transmissions, and cabs/coverings of agricultural machinery products. First Tractor Company Limited was founded in 1955 and is based in Luoyang, China.
Stock analysis
First Tractor Co Ltd (601038) currently trades at ¥13.89, while our model-based Fair Value estimate is ¥10.52, implying the stock looks roughly 32.0% overvalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of ¥12.00 per share, and 2 of the 24 models we run sit above the ¥13.89 price.
Bear case: the Dividend Discount group reads lowest at ¥4.51, and 22 of the 24 models stay below the price. Evidence for this calculation is high.
Scenario range: ¥8.05 (bear) to ¥13.39 (bull), the price of ¥13.89 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 58/100 (solid quality), in the Industrials sector.
Weak Growth: Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
First Tractor Co Ltd reported revenue of 10.8B CNY in FY2025 versus 9.3B CNY in FY2021, a compound +3.8%/yr. Reported net income was 812M CNY in FY2025, compounding +16.7%/yr from FY2021.
Key figures
Market cap 15.6B CNY (≈ $2.3B) · P/E ratio 18.3 · P/S ratio 1.38 · EPS (TTM) ¥0.7200 · Dividend yield 1.9% · Net margin 7.5% · Return on equity 10.4% · Return on assets (EBIT) 5.2%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 42 out of 100 (low confidence).
What moves the price
The share trades about 12% below its 52-week high and 36% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Industrials peers we cover trades at 16% fair-value upside, at −24%, 601038 screens richer than that median.
Fair Value models
Bear ¥8.05Fair Value ¥10.52Bull ¥13.39
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 9 months old). Earnings retained since then (¥0.3321 per share) are deliberately not added.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 ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.40/100
Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Revenue growth 1 year
−9.1%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
−4.9%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+7.4%
Start year 2020 (pandemic). Over 10 years: +1.1% a year
Revenue growth 21 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+4.6%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+22.4%
Earnings growth per share plus dividend.
Earnings per share, growth per year+20.5%
Dividend (yield on the price)1.9%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.21% vs 16%, picking up
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.4% → 5%
Start year 2020 (pandemic)
Growth Forecast
Price in line with expectations
The price assumes about as much growth as the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+7.2%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (China: IMF forecast 1.7% a year to 2030, 1.4% from 2016 to 2025) that is about +5.4% a year for the price.
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Farm & Heavy Construction Machinery · 154 stocks
Beats the industry median on 7/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score58 · Above median
Fair Value upside−24% · Below median
Profitability
Return on equity (TTM)10% · Above median
Return on assets2% · Below median
Net margin (TTM)8% · Above median
Operating margin (TTM)13% · Top 25%
Growth and dividend
Revenue growth3% · Below median
Dividend yield (TTM)1.9% · Below median
Balance sheet
Debt / equity0.06× · Below median
Valuation Multiplesvs Farm & Heavy Construction Machinery median · lower = cheaper
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Cite: Fair Value Calculator (2026). "First Tractor Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/601038
Frequently asked questions
Is First Tractor Co Ltd (601038) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of ¥10.52 versus a price of ¥13.89, about −24% upside (overvalued).
What is the fair value of 601038?
Our model-based fair value for First Tractor Co Ltd is ¥10.52 (as of Sep 24, 2026), built from audited fundamentals. The current price: ¥13.89.
What is the quality score of 601038?
First Tractor Co Ltd has a Quality Score of 58/100. 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 price target for First Tractor Co Ltd (601038)?
Our model-based price target is the fair value of ¥10.52 (as of Sep 24, 2026) from 24 valuation models. Cautious scenario ¥8.05, optimistic scenario ¥13.39. It is a calculation from audited fundamentals, not an analyst target.
What is the First Tractor Co Ltd stock forecast for 2026?
Our models put fair value at ¥10.52, about −24% upside versus a price of ¥13.89 (overvalued). Cautious scenario ¥8.05, optimistic scenario ¥13.39. The calculation is refreshed regularly with new filings.
What is the revenue of First Tractor Co Ltd (601038)?
First Tractor Co Ltd reported trailing-twelve-month revenue of about 10.9B CNY (latest available figure, as of Sep 24, 2026).
Does First Tractor Co Ltd pay a dividend?
First Tractor Co Ltd currently shows a dividend yield of about 1.92% relative to its recent price (as of Sep 24, 2026).
What growth is priced into First Tractor Co Ltd (601038)?
For today's price to be fair in a discounted-cash-flow model, First Tractor Co Ltd would have to grow free cash flow by +7.2 % per year for five years (discount rate 11.1 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +7.4 % per year. As of Sep 24, 2026.
What discount rate (WACC) does the fair value of 601038 use?
Our models discount First Tractor Co Ltd at 11.1 %: a base by market capitalisation (mid), damped by beta 1.25, country premium for China. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For First Tractor Co Ltd that is +7.2 % per year a year over ten years, using the same discount rate (11.1 %) and the same formula as our fair value.
How much growth has First Tractor Co Ltd (601038) delivered so far?
Over the past 5 years revenue at First Tractor Co Ltd grew +7.4 % a year. The price currently implies +7.2 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of First Tractor Co Ltd (601038) growing?
The median revenue growth in the sector is +4.7 % a year. That is the yardstick for the growth priced into First Tractor Co Ltd (+7.2 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of First Tractor Co Ltd (601038)?
The free-cash-flow yield on the price is 5.53 %: that much free cash flow First Tractor Co Ltd produces per unit of market value. When it exceeds the discount rate of our models (11.1 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of First Tractor Co Ltd (601038)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For First Tractor Co Ltd it is ¥10.52 per share (as of Sep 24, 2026), against a price of ¥13.89. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is First Tractor Co Ltd stock overvalued or undervalued in 2026?
As of Sep 24, 2026, 601038 trades above its calculated fair value: price ¥13.89, fair value ¥10.52, a gap of about −24% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 601038?
No. The price is what the market pays today (¥13.89); the fair value is what the company's own numbers justify (¥10.52). For First Tractor Co Ltd the two are ¥3.37 per share apart. That gap is exactly why we show both numbers side by side.
How much is First Tractor Co Ltd worth?
The market values First Tractor Co Ltd at about 15.6B CNY (market capitalisation, as of Sep 24, 2026). Per share that is ¥13.89; our models calculate a fair value of ¥10.52 per share.
What do the bullish and bearish scenarios say about 601038?
Our models span a range for First Tractor Co Ltd: cautious scenario ¥8.05, base ¥10.52, optimistic ¥13.39 per share (as of Sep 24, 2026, price ¥13.89). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 601038?
First Tractor Co Ltd trades at a price-to-earnings ratio of 18.3 (as of Sep 24, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ¥10.52 is built from several models across several years. Other multiples: P/B 2.0, P/S 1.4, EV/EBITDA 15.7.
How solid is the balance sheet of First Tractor Co Ltd (601038)?
Balance-sheet figures for First Tractor Co Ltd (as of Sep 24, 2026): return on equity 10.4%, debt of 0.06 per unit of equity. They feed the Quality Score of 58/100, which measures business quality independently of the share price.
How far is 601038 from its 52-week high?
First Tractor Co Ltd trades at ¥13.89, about 12% below its 52-week high of ¥15.82 and 36% above the low of ¥10.23 (as of Sep 23, 2026). Distance from the high says nothing about value: that is what the fair value of ¥10.52 is for.
Which stocks are comparable to First Tractor Co Ltd?
From the same area (Industrials) we also value Caterpillar Inc, Deere & Company, PACCAR Inc, Daimler Truck Holding, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is First Tractor Co Ltd stock attractive at the current price?
The data as of Sep 24, 2026: price ¥13.89, calculated fair value ¥10.52 (−24%), Quality Score 58/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 601038 calculated?
We run First Tractor Co Ltd through 24 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ¥10.52, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.1 % above its aggregate fair value. First Tractor Co Ltd itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of First Tractor Co Ltd (601038)?
The closing price on Sep 23, 2026 was ¥13.89. Our model-based fair value is ¥10.52, about −24% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with First Tractor Co Ltd right now?
The price sits above even our optimistic bull case (¥13.39). The favourable scenario is already priced in. Solid but not exceptional quality (58/100) and above fair value, neither a clear bargain nor a standout compounder.
Where does the earnings growth of First Tractor Co Ltd (601038) come from?
Earnings per share at First Tractor Co Ltd grew +18.5 % a year from 2014 to 2025. Broken into its drivers: revenue per share +1.1 %, EBIT margin +28.2 %, tax rate +2.5 %, residual (interest, one-offs) −10.8 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of First Tractor Co Ltd
How large is the market capitalisation of First Tractor Co Ltd (601038)?
The market capitalisation of First Tractor Co Ltd is 15.6B CNY (≈ $2.3B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of First Tractor Co Ltd (601038)?
The price-to-sales ratio of First Tractor Co Ltd is 1.38 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of First Tractor Co Ltd (601038)?
Earnings per share at First Tractor Co Ltd are ¥0.7200 (price ÷ EPS = P/E 18.3). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of First Tractor Co Ltd (601038)?
The dividend yield of First Tractor Co Ltd is 1.9% (payout 36.9%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of First Tractor Co Ltd (601038)?
The net margin of First Tractor Co Ltd is 7.5% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of First Tractor Co Ltd (601038)?
The return on equity (ROE) of First Tractor Co Ltd is 10.4% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of First Tractor Co Ltd (601038)?
On an EBIT basis the return on assets of First Tractor Co Ltd is 5.2% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of First Tractor Co Ltd (601038)?
The operating margin of First Tractor Co Ltd is 12.8% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at First Tractor Co Ltd (601038)?
Revenue at First Tractor Co Ltd is growing +2.5% versus a year earlier (3y avg −4.9%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at First Tractor Co Ltd (601038)?
Earnings per share at First Tractor Co Ltd are growing +6.2% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does First Tractor Co Ltd (601038) carry?
The net debt of First Tractor Co Ltd is 1.1B CNY (fiscal year 2025, ≈ 1.3 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Sep 24, 2026