Ossen Innovation Co., Ltd.: Fading performance but may be making a comeback?

Ossen Innovation Co., Ltd. relative valuation is NEUTRAL and it has a fundamental analysis score of 72.

Our analysis is based on comparing Ossen Innovation Co., Ltd. with the following peers – China Gerui Advanced Materials Group Ltd., Cleantech Solutions International, Inc., Sutor Technology Group Ltd., Carpenter Technology Corporation and DMC Global Inc. (CHOPF-US, CLNT-US, TORZ-US, CRS-US and BOOM-US).

Ossen Innovation Co., Ltd. has shown underwhelming performance over the last one year while growing strongly over the last month. While Ossen Innovation Co., Ltd.’s price momentum over the last month, at 1.56% has been strong, Ossen Innovation Co., Ltd. has actually lagged its peer group that grew at 5.61%.

Company Snapshot

  • With respect to peers, relative outperformance over the last year is in contrast to the more recent underperformance.
  • Ossen Innovation Co., Ltd. Sponsored ADR currently trades at a higher Price/Book ratio (0.14) than its peer median (0.09).
  • OSN-US‘s operating performance is relatively good compared to its peers. The market currently does not expect high earnings growth relative to its peers but seems to expect the company to maintain its relatively high rates of return.
  • OSN-US has a successful operating model with relatively high net profit margins and asset turns.
  • The company’s year-on-year change in revenues and earnings are better than the median among its peer group.
  • Over the last five years, OSN-US‘s return on assets has improved from median to better than the median among its peers, suggesting the company has found relative operating advantages.
  • The company’s relatively high gross and pre-tax margins suggest a differentiated product portfolio and tight control on operating costs relative to peers.
  • While OSN-US‘s revenues in recent years have grown faster than the peer median, the market gives the stock a P/E ratio that is around peer median suggesting that the market has some questions about the company’s long-term strategy.
  • The company’s capital investment program suggests it is under-investing in a business that is producing peer median returns.
  • OSN-US seems to be constrained by the current level of debt.
  • Our analysis rates Ossen Innovation Co., Ltd. as NEUTRAL relative to its peers.

Share Price Performance

With respect to peers, relative outperformance over the last year is in contrast to the more recent underperformance.

OSN-US‘s change in share price of -7.15% for the last 12 months is better than its peer median. However, the 30-day trend in its share price performance of 1.56% is below the peer median suggesting that the company’s recent performance has faded significantly relative to peers.

Share Price Performance

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Leading, Fading, Lagging, Rising

Relative Valuation

Relative Valuation
Fundamental Score

Ossen Innovation Co., Ltd. is currently neutrally valued, as its previous close of USD 2.17 lies within the CapitalCube estimate range of USD 2.17 to USD 2.81. Over the last 52 week period, Ossen Innovation Co., Ltd. has fluctuated between USD 1.92 and USD 3.54.

Valuation & Peer Metrics

A complete list of valuation metrics is available on the company page.

Company Profile

Ossen Innovation Co., Ltd. design, manufactures and sells pre-stressed steel materials. The company products include plain surface steel wires and strands; and rare earth coated and zinc-coated pre-stressed steel materials. It operates through the following segments: Domestic and International Sales. The company was founded in 2004 and is headquartered in Shanghai, China.

Disclaimer

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