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China Railway Signal & Communication Corporation (688009) Fair Value & Analysis

Industrials · CN · Market cap 52.1B CNY

CR China Railway Signal & Communication Corporation 688009 · SHG
Price¥4.94
Fair Value¥5.22
Upside+5.7%
Quality53/100
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Mixed Growth
Solidly profitable · 10.6% net margin
Low debt · negative free cash flow
3.49% dividend yield
Ranks above peers (9/13)
Narrow moat 40/100
Evidence: High Range ¥3.78 – ¥6.21 Share as image

Fair value as of: Jul 7, 2026

From 16 valuation models · updated 34 days ago

Fair value updated Jul 7, 2026, revised from ¥6.52 to ¥5.22 (−19.9%) since Jun 24, 2026. Share price +1.6% over the past month.

A solid business, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • Our model range runs from ¥3.78 (bear) to ¥6.21 (bull), base ¥5.22. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 53/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

¥7.13 ¥3.85 Fair Value ¥5.22 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 7, 2026.

How to read this chart

60‑month range ¥3.85 – ¥7.13 · fair‑value band ¥3.78 – ¥6.21 · the ¥4.94 price screens below the ¥5.22 fair value. Dashed = 300-day average. As of Jul 7, 2026.

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Analysis

China Railway Signal & Communication Corporation (688009) currently trades at ¥4.94, while our model-based Fair Value estimate is ¥5.22, implying the stock looks roughly 5.7% fairly valued today. The Quality Score stands at 53/100 (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, China Railway Signal & Communication Corporation generated revenue of 34.3B CNY at a net margin of 10.6%. Revenue declined 3.5% year over year. It earns a return on equity of 8.1%. The balance sheet holds a net cash position of 10.0B CNY. Fundamentals as of Jul 7, 2026

Our scenario range runs from ¥3.78 (bear case) to ¥6.21 (bull case); at ¥4.94, 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 22% below its 52-week high and 4% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -28% fair-value upside, at 6%, 688009 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
Residual Income ¥3.65 ¥3.90 ¥4.32 76
ROIC Compounder ¥4.56 ¥5.27 ¥6.07 72
Gordon GGM ¥1.54 ¥2.51 ¥3.63 70
All 16 models by family
DCF Models
Owner Earnings ¥4.97 ¥6.52 ¥8.71 31
Earnings-Based
Graham-Dodd ¥2.31 ¥5.22 ¥6.68 54
PEG = 1.0 ¥0.8600 ¥1.22 ¥1.59 46
EPV ¥4.54 ¥5.07 ¥5.53 59
Dividend Discount
Gordon GGM ¥1.54 ¥2.51 ¥3.63 70
DDM Multi-Stage ¥1.54 ¥2.24 ¥3.03 61
Multiples
P/E Multiple ¥5.35 ¥7.14 ¥8.92 63
P/S Multiple ¥4.33 ¥5.78 ¥7.22 58
P/B Multiple ¥4.33 ¥5.78 ¥7.22 55
EV/EBIT ¥7.04 ¥8.92 ¥10.81 53
EV/EBITDA ¥6.40 ¥8.07 ¥9.74 54
EV/Revenue ¥5.42 ¥7.15 ¥8.88 43
Asset-Based
NCAV (Graham) ¥2.20 ¥2.95 ¥4.40 50
Economic Profit
Residual Income ¥3.65 ¥3.90 ¥4.32 76
ROIC Compounder ¥4.56 ¥5.27 ¥6.07 72
Growth Earnings
Growth-Adj P/E ¥4.01 ¥5.73 ¥7.44 68

Widest divergence: Multiples (¥7.14) versus Dividend Discount (¥2.24). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 34.3B CNY
Revenue growth (YoY) -3.5%
Net margin 10.6%
Return on equity 8.1%
Free cash flow −1.8B CNY FY2025
P/E ratio 14.5
More key figures
Operating margin 11.6%
EPS (TTM) ¥0.3400
Dividend yield 3.5%
Net cash 10.0B CNY FY2025

Figures from reported company fundamentals · as of Jul 7, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 53/100

Of which business quality 48 · Market factors (momentum, volatility) 45

Profitability 28
Margins and returns on capital today
Quality Growth 38
Are margins and returns improving?
Cashflow 3
Earnings quality: real cash, not paper profit
Fin. Strength 65
Balance sheet, leverage, solvency risk
Investment 96
Disciplined investing over empire-building
Low Volatility 91
Calm price path (market factor)
Momentum 30
Price trend over the last 3–12 months (market factor)
52W Momentum 20
Distance to the 52-week high (market factor)
Net Issuance 92
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

China Railway Signal & Communication Corporation Limited, together with its subsidiaries, provides rail transportation control system solutions in China and internationally. It operates through Rail Transportation Control System, General Engineering Contracting, and Others segments.

Full company description

China Railway Signal & Communication Corporation Limited, together with its subsidiaries, provides rail transportation control system solutions in China and internationally. It operates through Rail Transportation Control System, General Engineering Contracting, and Others segments. The company offers design and integration, and system integration services for rail transportation control system-related products; and design and consulting services for rail transportation projects. It also produces and sells signal system products, communication information system products, infrastructure equipment and information systems, and other related products. In addition, the company offers construction, installation, testing, operation, and maintenance services for rail transportation control projects; and services relating to municipal engineering projects and other construction projects. Further, it engages in the system delivery service, investment management, and technical exchange and trade activities, as well as provision of project management activities. The company was founded in 2010 and is headquartered in Beijing, China. China Railway Signal & Communication Corporation Limited operates as a subsidiary of China Railway Signal & Communication (Group) Corporation Limited.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Railway Signal & Communication Corporation reported revenue of ¥34.7B in FY2025 versus ¥38.4B in FY2021, a compound −2.5%/yr. Reported net income was ¥3.7B in FY2025, compounding +2.8%/yr from FY2021.

Growth Quality 55/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
34.7B CNY
Latest YoY
+6.8%
Avg. growth/yr (3Y)
−4.8%
Avg. growth/yr (5Y)
−2.9%
Avg. growth/yr (13Y)
+9.6%
Revenue −2.5%/yr
FY21 ¥38.4B
FY22 ¥40.2B
FY23 ¥37.0B
FY24 ¥32.5B
FY25 ¥34.7B
Net income +2.8%/yr
FY21 ¥3.3B
FY22 ¥3.6B
FY23 ¥3.5B
FY24 ¥3.5B
FY25 ¥3.7B

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Cite: Fair Value Calculator (2026). "China Railway Signal & Communication Corporation Fair Value". https://www.fairvalue-calculator.com/stock/688009

Peer Group

Railroads · 111 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 53 · Below median
Fair Value upside +6% · Above median
Return on equity (TTM) 8% · Above median
Return on assets 2% · Below median
Net margin (TTM) 11% · Above median
Operating margin (TTM) 12% · Above median
Revenue growth -4% · Below median
Dividend yield (TTM) 3.5% · Above median
Debt / equity 0.16× · Lower than median

Valuation Multiples vs Railroads median · lower = cheaper

P/E (TTM) 14.5× · Cheaper than median
P/B 1.10× · Cheaper than median
P/S (TTM) 1.52× · Pricier than median
EV/EBITDA 8.0× · 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 41 · sector 28
FUTURE 0 · sector 20
PAST 32 · sector 31
HEALTH 92 · sector 88
DIVIDEND 70 · sector 41

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 Railroads stocks, each showing price versus our Fair Value estimate (as of Jul 7, 2026).

Stock Price Fair Value vs Fair Value
Union Pacific Corporation UNP $301.75 $144.60 -52%
CSX Corporation CSX $49.41 $12.85 -74%
Canadian Pacific Kansas City Limited CP $92.91 $35.00 -62%
Canadian National Railway Company CNI $128.22 $92.63 -28%
Norfolk Southern Corporation NSC $327.47 $117.90 -64%
Westinghouse Air Brake Technologies Corporation WAB $259.71 $144.80 -44%
Beijing-Shanghai High-Speed Railway Co 601816 ¥4.82 ¥5.65 +17%
CRRC Corporation 601766 ¥5.65 ¥9.53 +69%
Daqin Railway Co 601006 ¥4.85 ¥6.24 +29%
Hyundai Rotem Company 064350 167,700 KRW 125,182 KRW -25%

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Frequently asked questions

Is China Railway Signal & Communication Corporation (688009) overvalued or undervalued?
As of Jul 7, 2026, our model estimates a fair value of ¥5.22 versus a price of ¥4.94, about +6% (fairly valued).
What is the fair value of 688009?
Our model-based fair value for China Railway Signal & Communication Corporation is ¥5.22 (as of Jul 7, 2026), built from audited fundamentals. The current price is ¥4.94.
What is the quality score of 688009?
China Railway Signal & Communication Corporation has a Quality Score of 53/100. 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 China Railway Signal & Communication Corporation (688009)?
China Railway Signal & Communication Corporation reported trailing-twelve-month revenue of about 34.3B CNY (latest available figure, as of Jul 7, 2026).
What is the net profit margin of 688009?
The net profit margin of China Railway Signal & Communication Corporation is about 10.6%, meaning it keeps roughly 10.6% of revenue as net income. Based on the latest reported figures.
Does China Railway Signal & Communication Corporation pay a dividend?
China Railway Signal & Communication Corporation currently shows a dividend yield of about 3.49% relative to its recent price (as of Jul 7, 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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