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Shanghai Material Trading Co (900927) Fair Value & Analysis

Industrials · CN · Market cap $158M

SM Shanghai Material Trading Co 900927 · SHG
Price$0.3370
Fair Value$0.6360
Upside+88.7%
Quality50/100
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Weak Growth
Thin margins · 1.8% net margin
Low debt · negative free cash flow
Trails peers (3/9)
Narrow moat 25/100
Evidence: Medium Range $0.4770 – $0.7950 Share as image

Fair value as of: Jul 25, 2026

From 6 valuation models · updated 16 days ago

Fair value updated Jul 25, 2026, revised from $0.6400 to $0.6360 (−0.6%) since Jun 26, 2026. Share price +4.3% over the past month.

A solid business, screening 89% undervalued on our models.

What matters now

  • The price is below even our cautious bear case ($0.4770). The market is more pessimistic than our downside scenario.
  • Solid quality (50/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

$0.6500 $0.2710 Fair Value $0.6360 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 25, 2026.

How to read this chart

60‑month range $0.2710 – $0.6500 · fair‑value band $0.4770 – $0.7950 · the $0.3370 price screens below the $0.6360 fair value. Dashed = 300-day average. As of Jul 25, 2026.

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Analysis

Shanghai Material Trading Co (900927) currently trades at $0.3370, while our model-based Fair Value estimate is $0.6360, implying the stock looks roughly 88.7% undervalued today. The Quality Score stands at 50/100 (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: medium), always confirm before acting.

Over the trailing twelve months, Shanghai Material Trading Co generated revenue of $1.6B at a net margin of 1.8%. Revenue declined 24.2% year over year. It earns a return on equity of 2.3%. The stock trades on a trailing P/E of 31.8. Fundamentals as of Jul 25, 2026

Our scenario range runs from $0.4770 (bear case) to $0.7950 (bull case); at $0.3370, the current price sits below 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 28% below its 52-week high and 9% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -14% fair-value upside, at 89%, 900927 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 $1.59 $1.46 $1.02 76
P/E Multiple $0.9300 $1.23 $1.54 63
P/B Multiple $0.7500 $1.00 $1.25 55
All 6 models by family
DCF Models
Owner Earnings $2.47 $2.56 $2.71 31
Earnings-Based
Graham-Dodd $0.4000 $0.4900 $0.5500 54
Multiples
P/E Multiple $0.9300 $1.23 $1.54 63
P/B Multiple $0.7500 $1.00 $1.25 55
Asset-Based
NCAV (Graham) $1.25 $1.67 $2.49 50
Economic Profit
Residual Income $1.59 $1.46 $1.02 76

Widest divergence: DCF Models ($2.56) versus Earnings-Based ($0.4900). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) $1.6B
Revenue growth (YoY) -24.2%
Net margin 1.8%
Return on equity 2.3%
Free cash flow −$38.2M FY2025
P/E ratio 31.8
More key figures
Operating margin 0.3%
EPS (TTM) $0.0100
EPS growth (YoY) -12.5%

Figures from reported company fundamentals · as of Jul 25, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 50/100

Of which business quality 49 · Market factors (momentum, volatility) 45

Profitability 34
Margins and returns on capital today
Quality Growth 34
Are margins and returns improving?
Cashflow 6
Earnings quality: real cash, not paper profit
Fin. Strength 75
Balance sheet, leverage, solvency risk
Investment 87
Disciplined investing over empire-building
Low Volatility 96
Calm price path (market factor)
Momentum 26
Price trend over the last 3–12 months (market factor)
52W Momentum 21
Distance to the 52-week high (market factor)
Net Issuance 82
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

Shanghai Material Trading Co., Ltd. engages in the wholesale and retail of production materials for automobile and chemicals in China and internationally. The company offers metal materials, mineral products, chemical raw materials, and automobiles and accessories.

Full company description

Shanghai Material Trading Co., Ltd. engages in the wholesale and retail of production materials for automobile and chemicals in China and internationally. The company offers metal materials, mineral products, chemical raw materials, and automobiles and accessories. It is also involved in owning trading centers; used car transactions; new energy shopping malls; and delivery centers. In addition, the company provides maintenance, ferrous metal warehousing, and logistics services. The company was formerly known as Shanghai Material Trading Center Co., Ltd. The company was founded in 1993 and is based in Shanghai, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shanghai Material Trading Co reported revenue of $1.7B in FY2025 versus $6.6B in FY2021, a compound −28.9%/yr. Reported net income was $29.2M in FY2025, compounding −33.3%/yr from FY2021.

Growth Quality 14/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
$1.7B
Latest YoY
−34.2%
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.
−30.6%
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.
−26.5%
Avg. growth/yr (10Y) 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.
−29.7%
Revenue −28.9%/yr
FY21 $6.6B
FY22 $5.0B
FY23 $3.5B
FY24 $2.6B
FY25 $1.7B
Net income −33.3%/yr
FY21 $148M
FY22 $59.9M
FY23 $140M
FY24 $50.5M
FY25 $29.2M

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Cite: Fair Value Calculator (2026). "Shanghai Material Trading Co Fair Value". https://www.fairvalue-calculator.com/stock/900927

Peer Group

Conglomerates · 369 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 50 · Above median
Fair Value upside +90% · Top 25%
Return on equity (TTM) 2% · Below median
Return on assets -0% · Bottom 25%
Net margin (TTM) 2% · Below median
Operating margin (TTM) 0% · Below median
Revenue growth -24% · Bottom 25%
Debt / equity 0.00× · Lower than 75% of peers

Valuation Multiples vs Conglomerates median · lower = cheaper

P/E (TTM) 31.8× · Pricier than 75% of peers

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 100 · sector 20
FUTURE 0 · sector 16
PAST 9 · sector 20
HEALTH 100 · sector 88
DIVIDEND 0 · sector 39

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.

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Frequently asked questions

Is Shanghai Material Trading Co (900927) overvalued or undervalued?
As of Jul 25, 2026, our model estimates a fair value of $0.6360 versus a price of $0.3370, about +89% (undervalued).
What is the fair value of 900927?
Our model-based fair value for Shanghai Material Trading Co is $0.6360 (as of Jul 25, 2026), built from audited fundamentals. The current price is $0.3370.
What is the quality score of 900927?
Shanghai Material Trading Co has a Quality Score of 50/100. 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 Shanghai Material Trading Co (900927)?
Shanghai Material Trading Co reported trailing-twelve-month revenue of about $1.6B (latest available figure, as of Jul 25, 2026).
What is the net profit margin of 900927?
The net profit margin of Shanghai Material Trading Co is about 1.8%, meaning it keeps roughly 1.8% 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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