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Warom Technology Incorporated (603855) Fair Value & Analysis

Industrials · CN · Market cap 6.0B CNY

WT Warom Technology Incorporated 603855 · SHG
Price¥16.49
Fair Value¥18.29
Upside+10.9%
Quality60/100
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Expensive Growth
Solidly profitable · 11.2% net margin
Low debt · generates free cash flow
Ranks above peers (9/13)
Moderate moat 58/100
Evidence: High Range ¥10.12 – ¥28.77 Share as image

Fair value as of: Jul 11, 2026

From 25 valuation models · updated 30 days ago

Share price −1.7% over the past month.

A solid business, screening 11% undervalued on our models.

What matters now

  • The model range is unusually wide (¥10.12 to ¥28.77). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Our model range runs from ¥10.12 (bear) to ¥28.77 (bull), base ¥18.29. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 60/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

¥28.64 ¥14.05 Fair Value ¥18.29 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 11, 2026.

How to read this chart

60‑month range ¥14.05 – ¥28.64 · fair‑value band ¥10.12 – ¥28.77 · the ¥16.49 price screens below the ¥18.29 fair value. Dashed = 300-day average. As of Jul 11, 2026.

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Analysis

Warom Technology Incorporated (603855) currently trades at ¥16.49, while our model-based Fair Value estimate is ¥18.29, implying the stock looks roughly 10.9% undervalued today. The Quality Score stands at 60/100 (solid quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Warom Technology Incorporated generated revenue of 3.1B CNY at a net margin of 11.2%. Revenue declined 15.0% year over year. It earns a return on equity of 15.7%. The balance sheet holds a net cash position of 863M CNY. Fundamentals as of Jul 11, 2026

Our scenario range runs from ¥10.12 (bear case) to ¥28.77 (bull case); at ¥16.49, 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 29% below its 52-week high, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at 11%, 603855 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 BearBaseBull Evidence
Highest evidence
Growth DCF ¥3.27 ¥3.74 ¥4.45 80
Residual Income ¥6.84 ¥8.37 ¥16.83 76
ROIC Compounder ¥16.53 ¥20.09 ¥24.14 72
All 25 models by family
DCF Models
FCF DCF ¥3.27 ¥3.76 ¥4.52 38
Owner Earnings ¥13.08 ¥19.72 ¥30.04 31
5Y Revenue Exit ¥10.31 ¥17.55 ¥27.32 39
5Y EBITDA Exit ¥13.02 ¥22.85 ¥34.92 41
5Y P/E Exit ¥12.89 ¥22.58 ¥33.32 38
10Y Revenue Exit ¥7.36 ¥13.28 ¥22.14 36
10Y EBITDA Exit ¥9.45 ¥16.96 ¥28.05 37
10Y P/E Exit ¥9.36 ¥16.77 ¥26.81 35
Earnings-Based
Graham-Dodd ¥7.45 ¥28.20 ¥38.17 54
Lynch FV ¥6.84 ¥9.76 ¥12.69 50
PEG = 1.0 ¥6.84 ¥9.76 ¥12.69 46
EPV ¥15.47 ¥17.52 ¥19.29 59
Dividend Discount
Gordon GGM ¥8.95 ¥17.83 ¥27.00 70
DDM Multi-Stage ¥8.95 ¥15.41 ¥18.82 61
Multiples
P/E Multiple ¥17.26 ¥23.01 ¥28.77 63
P/S Multiple ¥13.97 ¥18.63 ¥23.29 58
P/B Multiple ¥13.97 ¥18.63 ¥23.29 55
EV/EBIT ¥22.83 ¥29.61 ¥36.39 53
EV/EBITDA ¥19.98 ¥25.81 ¥31.64 54
EV/Revenue ¥14.50 ¥19.65 ¥24.80 43
Asset-Based
NCAV (Graham) ¥3.19 ¥4.28 ¥6.39 50
Growth DCF
Growth DCF ¥3.27 ¥3.74 ¥4.45 80
Economic Profit
Residual Income ¥6.84 ¥8.37 ¥16.83 76
ROIC Compounder ¥16.53 ¥20.09 ¥24.14 72
Growth Earnings
Growth-Adj P/E ¥12.51 ¥17.88 ¥23.24 68

Widest divergence: Multiples (¥19.65) versus Growth DCF (¥3.74). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 3.1B CNY
Revenue growth (YoY) -15.0%
Net margin 11.2%
Return on equity 15.7%
Free cash flow 23.2M CNY FY2025
P/E ratio 17.3
More key figures
Operating margin 19.1%
EPS (TTM) ¥1.03
EPS growth (YoY) -17.6%
Net cash 863M CNY FY2024

Figures from reported company fundamentals · as of Jul 11, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 60/100

Of which business quality 57 · Market factors (momentum, volatility) 35

Profitability 55
Margins and returns on capital today
Quality Growth 44
Are margins and returns improving?
Cashflow 12
Earnings quality: real cash, not paper profit
Fin. Strength 81
Balance sheet, leverage, solvency risk
Investment 77
Disciplined investing over empire-building
Low Volatility 85
Calm price path (market factor)
Momentum 19
Price trend over the last 3–12 months (market factor)
52W Momentum 4
Distance to the 52-week high (market factor)
Net Issuance 87
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

Warom Technology Incorporated Company researches and develops, manufactures, and supplies explosion-proof electric apparatus and professional lighting equipment in China and internationally.

Full company description

Warom Technology Incorporated Company researches and develops, manufactures, and supplies explosion-proof electric apparatus and professional lighting equipment in China and internationally. The company offers lighting technology products, such as fluorescent lamps, LED light fittings, pendant light fittings, floodlights, street and hand lamps, and spotlight fittings; and installation equipment, including installation switches, junction boxes, and terminal boxes. It also provides control equipment comprising position switches, control stations and units, control buttons, indicators; distribution boxes, and explosion-proof and safety enclosures. Its products are used in oil, chemical industry, natural gas, ocean platform, coal mine, army, public security, fire control, railway, highway, port, stadium, and other industries. Warom Technology Incorporated Company was founded in 1987 and is based in Shanghai, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Warom Technology Incorporated reported revenue of ¥3.2B in FY2025 versus ¥3.0B in FY2021, a compound +1.5%/yr. Reported net income was ¥370M in FY2025, compounding −0.7%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
3.2B CNY
Avg. growth/yr (3Y)
+9.4%
Avg. growth/yr (5Y)
+15.3%
Avg. growth/yr (12Y)
+8.7%
Revenue +1.5%/yr
FY21 ¥3.0B
FY22 ¥3.0B
FY23 ¥3.2B
FY24 ¥4.0B
FY25 ¥3.2B
Net income −0.7%/yr
FY21 ¥381M
FY22 ¥358M
FY23 ¥461M
FY24 ¥462M
FY25 ¥370M

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Cite: Fair Value Calculator (2026). "Warom Technology Incorporated Fair Value". https://www.fairvalue-calculator.com/stock/603855

Peer Group

Electrical Equipment & Parts · 528 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 60 · Above median
Fair Value upside +11% · Top 25%
Return on equity (TTM) 16% · Top 25%
Return on assets 6% · Above median
Net margin (TTM) 11% · Top 25%
Operating margin (TTM) 19% · Top 25%
Revenue growth -15% · Bottom 25%

Valuation Multiples vs Electrical Equipment & Parts median · lower = cheaper

P/E (TTM) 17.3× · Cheaper than 75% of peers
P/B 2.78× · Pricier than median
P/S (TTM) 1.94× · Pricier than median
P/FCF 38.4× · Pricier than 75% of peers
EV/EBITDA 9.7× · Cheaper 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 48 · sector 0
FUTURE 0 · sector 57
PAST 63 · sector 26
HEALTH 100 · sector 97
DIVIDEND 0 · sector 18

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 Electrical Equipment & Parts stocks, each showing price versus our Fair Value estimate (as of Jul 11, 2026).

Stock Price Fair Value vs Fair Value
Contemporary Amperex Technology Co 3750 HK$675.50 HK$391.44 -42%
ABB Ltd ABBN CHF 83.82 CHF 35.46 -58%
Delta Electronics (Thailand) Public Company TDED 10.16 SGD 1.47 SGD -86%
LG Energy Solution, Ltd 373220 334,000 KRW 201,455 KRW -40%
WEG S.A WEGE3 13,210 ARS 7,948 ARS -40%
Sungrow Power Supply Co 300274 ¥114.79 ¥123.83 +8%
Shenzhen Inovance Technology Co 300124 ¥63.43 ¥33.04 -48%
HD Hyundai Electric Co 267260 823,000 KRW 371,133 KRW -55%
LS ELECTRIC Co 010120 190,000 KRW 31,517 KRW -83%
Sieyuan Electric Co 002028 ¥151.73 ¥71.69 -53%

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Frequently asked questions

Is Warom Technology Incorporated (603855) overvalued or undervalued?
As of Jul 11, 2026, our model estimates a fair value of ¥18.29 versus a price of ¥16.49, about +11% (undervalued).
What is the fair value of 603855?
Our model-based fair value for Warom Technology Incorporated is ¥18.29 (as of Jul 11, 2026), built from audited fundamentals. The current price is ¥16.49.
What is the quality score of 603855?
Warom Technology Incorporated has a Quality Score of 60/100. 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 Warom Technology Incorporated (603855)?
Warom Technology Incorporated reported trailing-twelve-month revenue of about 3.1B CNY (latest available figure, as of Jul 11, 2026).
What is the net profit margin of 603855?
The net profit margin of Warom Technology Incorporated is about 11.2%, meaning it keeps roughly 11.2% 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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