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Jiangsu Rutong Petro-Machinery Co (603036) Fair Value & Analysis

Industrials · CN · Market cap 2.7B CNY

JR Jiangsu Rutong Petro-Machinery Co 603036 · SHG
Price¥13.18
Fair Value¥7.15
Upside-45.8%
Quality77/100
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Healthy Growth
Highly profitable · 23.0% net margin
generates free cash flow
1.69% dividend yield
Ranks above peers (9/13)
Moderate moat 63/100
Evidence: High Range ¥5.36 – ¥8.93 Share as image

Fair value as of: Aug 10, 2026

From 26 valuation models · updated yesterday

Share price +2.6% over the past month.

A strong business, but screening 46% overvalued on our models.

What matters now

  • A high-quality business (quality 77/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case (¥8.93). The favourable scenario is already priced in.
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Price vs Fair Value (5 years)

¥23.76 ¥6.80 Fair Value ¥7.15 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 10, 2026.

How to read this chart

60‑month range ¥6.80 – ¥23.76 · fair‑value band ¥5.36 – ¥8.93 · the ¥13.18 price screens above the ¥7.15 fair value. Dashed = 300-day average. As of Aug 10, 2026.

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Analysis

Jiangsu Rutong Petro-Machinery Co (603036) currently trades at ¥13.18, while our model-based Fair Value estimate is ¥7.15, implying the stock looks roughly 45.8% overvalued today. The Quality Score stands at 77/100 (high quality), in the Industrials 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, Jiangsu Rutong Petro-Machinery Co generated revenue of 433M CNY at a net margin of 23.0%. Revenue declined 4.4% year over year. It earns a return on equity of 7.3%. The balance sheet holds a net cash position of 468M CNY. Fundamentals as of Aug 10, 2026

Our scenario range runs from ¥5.36 (bear case) to ¥8.93 (bull case); at ¥13.18, 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 45% below its 52-week high and 1% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at -46%, 603036 screens cheaper 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 ¥5.47 ¥5.79 ¥6.27 76
Growth DCF ¥12.12 ¥16.58 ¥22.72 72
Gordon GGM ¥1.76 ¥3.50 ¥5.30 70
All 26 models by family
DCF Models
FCF DCF ¥12.00 ¥17.09 ¥24.58 38
Owner Earnings ¥8.18 ¥11.22 ¥15.70 31
5Y Revenue Exit ¥7.01 ¥8.39 ¥9.98 39
5Y EBITDA Exit ¥7.62 ¥9.53 ¥11.65 41
5Y P/E Exit ¥8.98 ¥12.08 ¥15.28 38
10Y Revenue Exit ¥8.74 ¥10.42 ¥12.44 36
10Y EBITDA Exit ¥9.17 ¥11.20 ¥13.69 37
10Y P/E Exit ¥10.02 ¥12.94 ¥16.41 35
Earnings-Based
Graham-Dodd ¥3.47 ¥11.06 ¥14.75 54
Lynch FV ¥2.44 ¥3.49 ¥4.53 50
PEG = 1.0 ¥2.44 ¥3.49 ¥4.53 46
EPV ¥7.06 ¥7.78 ¥8.40 59
Dividend Discount
Gordon GGM ¥1.76 ¥3.50 ¥5.30 70
DDM Multi-Stage ¥1.76 ¥2.88 ¥3.69 61
Multiples
P/E Multiple ¥5.36 ¥7.15 ¥8.93 63
P/S Multiple ¥1.91 ¥2.55 ¥3.18 58
P/B Multiple ¥6.51 ¥8.68 ¥10.85 55
EV/EBIT ¥6.82 ¥8.26 ¥9.70 53
EV/EBITDA ¥5.48 ¥6.48 ¥7.47 54
EV/Revenue ¥4.28 ¥5.05 ¥5.81 43
Asset-Based
NCAV (Graham) ¥3.37 ¥4.51 ¥6.73 50
Growth DCF
Growth DCF ¥12.12 ¥16.58 ¥22.72 72
Rev-Margin DCF ¥7.01 ¥8.54 ¥10.36 67
Economic Profit
Residual Income ¥5.47 ¥5.79 ¥6.27 76
ROIC Compounder ¥7.14 ¥8.31 ¥9.76 67
Growth Earnings
Growth-Adj P/E ¥4.71 ¥6.73 ¥8.75 68

Widest divergence: DCF Models (¥11.20) versus Dividend Discount (¥2.88). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 433M CNY
Revenue growth (YoY) -4.4%
Net margin 23.0%
Return on equity 7.3%
Free cash flow 180M CNY FY2025
P/E ratio 29.3
More key figures
Operating margin 24.4%
EPS (TTM) ¥0.4900
Dividend yield 1.5%
EPS growth (YoY) -15.4%
Net cash 468M CNY FY2024

Figures from reported company fundamentals · as of Aug 10, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 77/100

Of which business quality 76 · Market factors (momentum, volatility) 27

Profitability 43
Margins and returns on capital today
Quality Growth 50
Are margins and returns improving?
Cashflow 97
Earnings quality: real cash, not paper profit
Fin. Strength 100
Balance sheet, leverage, solvency risk
Investment 82
Disciplined investing over empire-building
Low Volatility 64
Calm price path (market factor)
Momentum 10
Price trend over the last 3–12 months (market factor)
52W Momentum 14
Distance to the 52-week high (market factor)
Net Issuance 79
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

Jiangsu Rutong Petro-Machinery Co., Ltd, together with its subsidiaries, researches, develops, manufactures, and sells oil drilling and production equipment and tools in China, the United States, the Middle East, Southeast Asia, Russia, North Africa, and internationally.

Full company description

Jiangsu Rutong Petro-Machinery Co., Ltd, together with its subsidiaries, researches, develops, manufactures, and sells oil drilling and production equipment and tools in China, the United States, the Middle East, Southeast Asia, Russia, North Africa, and internationally. It offers wellhead automation equipment comprising hydraulic elevators, elevator chucks, pneumatic and hydraulic slips, pneumatic and hydraulic chucks, hydraulic power tongs, grouting and circulation devices, and casing running devices; well repair automation equipment consisting of minor repair automatic operation devices, pipe laying devices, mechanized well repair equipment, and automatic catwalks; suspension tools, including pneumatic elevators, rings, manual and auxiliary elevators, and sucker rod suspension tools; and holding tools, such as drill pipe and casing slips, drill collar and safety slips, manual chucks, roller brushing, turntable repair, and casing busing products. The company also provides twist-on tools comprising manual lifting clamps, single buckle step lifting clamps, pneumatic screwdriver pliers, iron roughneck, lightweight and Russian type oil pipe clamps, sucker rod wrenches, belt pliers, and hydraulic power tongs; rail transit products, such as aluminum-based composite and integrated forged steel shaft mounted brake discs; and drill bit breakers, drill bit breaker connecting plates, diameter gauges, forks, hooks for core filling, quick release wire guards, buckles, scrappers, drill collar lifters, and various dental plates. In addition, it offers professional technical services. The company was founded in 1958 and is headquartered in Nantong, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Jiangsu Rutong Petro-Machinery Co reported revenue of ¥437M in FY2025 versus ¥270M in FY2021, a compound +12.8%/yr. Reported net income was ¥105M in FY2025, compounding +17.3%/yr from FY2021.

Growth Quality 82/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
437M CNY
Latest YoY
+7.1%
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.
+12.5%
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.
+8.5%
Avg. growth/yr (14Y) 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.
+3.8%
Revenue +12.8%/yr
FY21 ¥270M
FY22 ¥307M
FY23 ¥380M
FY24 ¥408M
FY25 ¥437M
Net income +17.3%/yr
FY21 ¥55.5M
FY22 ¥81.1M
FY23 ¥95.1M
FY24 ¥96.0M
FY25 ¥105M
Character of growth · EPS growth decomposed (2013-2024) −1.2 % p.a.
Revenue per share −0.6 pp

of which total revenue +2.8 pp · buybacks/dilution −3.4 pp

EBIT margin −0.4 pp
Tax rate +0.1 pp
Residual (interest, one-offs) −0.3 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).

603036 screens 46% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "Jiangsu Rutong Petro-Machinery Co Fair Value". https://www.fairvalue-calculator.com/stock/603036

Peer Group

Specialty Industrial Machinery · 805 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 77 · Top 25%
Fair Value upside −46% · Below median
Return on equity (TTM) 7% · Above median
Return on assets 4% · Above median
Net margin (TTM) 23% · Top 25%
Operating margin (TTM) 24% · Top 25%
Revenue growth -4% · Below median
Dividend yield (TTM) 1.7% · Above median

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 26.7× · Cheaper than median
P/B 1.94× · Cheaper than median
P/S (TTM) 6.22× · Pricier than 75% of peers
P/FCF 2.2× · Cheaper than median
EV/EBITDA 18.2× · 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 0 · sector 23
PAST 29 · sector 28
HEALTH 0 · sector 96
DIVIDEND 34 · sector 24

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.

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 Specialty Industrial Machinery stocks, each showing price versus our Fair Value estimate (as of Aug 10, 2026).

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GE Vernova Inc 1GEV €887.60 €186.93 -79%
1SIE 1SIE €273.20 €91.93 -66%
SMNS SMNS C$31.76 C$22.68 -29%
Eaton Corporation ETN $407.28 $171.92 -58%
Atlas Copco AB ATCOA kr 195.15 kr 112.59 -42%
Sandvik AB SAND kr 384.10 kr 193.01 -50%
Doosan Enerbility Co 034020 76,400 KRW 7,938 KRW -90%
Vestas Wind Systems A/S VWS kr 178.10 kr 124.54 -30%
Zhejiang Sanhua Intelligent Controls Co 002050 ¥43.20 ¥22.68 -48%
NARI Technology Co 600406 ¥22.19 ¥18.71 -16%

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Frequently asked questions

Is Jiangsu Rutong Petro-Machinery Co (603036) overvalued or undervalued?
As of Aug 10, 2026, our model estimates a fair value of ¥7.15 versus a price of ¥13.18, about −46% (overvalued).
What is the fair value of 603036?
Our model-based fair value for Jiangsu Rutong Petro-Machinery Co is ¥7.15 (as of Aug 10, 2026), built from audited fundamentals. The current price is ¥13.18.
What is the quality score of 603036?
Jiangsu Rutong Petro-Machinery Co has a Quality Score of 77/100. 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 Jiangsu Rutong Petro-Machinery Co (603036)?
Jiangsu Rutong Petro-Machinery Co reported trailing-twelve-month revenue of about 433M CNY (latest available figure, as of Aug 10, 2026).
What is the net profit margin of 603036?
The net profit margin of Jiangsu Rutong Petro-Machinery Co is about 23.0%, meaning it keeps roughly 23.0% of revenue as net income. Based on the latest reported figures.
Does Jiangsu Rutong Petro-Machinery Co pay a dividend?
Jiangsu Rutong Petro-Machinery Co currently shows a dividend yield of about 1.51% relative to its recent price (as of Aug 10, 2026).

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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