Yankuang Energy Group Company Sponsored ADR Class H (YZCAY) AI Stock Analysis

• Market Cap: $15.51B
• Dividend Yield: 13.73%
• Average Volume (3M): 31.00
• Price to Earnings (P/E): 6.0
• Beta (1Y): 0.08
• Revenue Growth: 3.22%
• EPS Growth: N/A
• Country: US
• Employees: 77,957
• Sector: Energy
• Sector Strength: 44
• Industry: Coal
• EPS (TTM): 0.37
• Shares Outstanding: 407,550,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 31
• PEG Ratio: -0.35
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.98
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: $12.00 ▲(1.01%Upside)

Yankuang Energy Group shows solid financial health with strong profit margins and efficient operations, though increasing leverage and cash flow conversion are areas to watch. Technically, the stock is neutral with slight upward momentum but may face short-term resistance. The valuation is highly attractive, offering significant upside due to its low P/E ratio and high dividend yield. Overall, the stock presents a strong investment case, tempered by financial leverage and potential market volatility.

Yankuang Energy Group Company Sponsored ADR Class H Business Overview & Revenue Model

Company Description

Yankuang Energy Group Company Limited Sponsored ADR Class H (YZCAY) is a diversified energy company primarily involved in coal mining and production, chemicals manufacturing, and power generation. Operating predominantly in China, Yankuang Energy Group plays a critical role in the energy sector by managing substantial coal reserves, producing a variety of chemical products, and maintaining a significant presence in electricity generation. The company is a key player in meeting the energy demands of both domestic and international markets.

How the Company Makes Money

Yankuang Energy Group Company Limited generates revenue primarily through its coal mining and production operations, which account for a significant portion of its income. The company extracts coal from its vast reserves, and sells it to power plants, industrial users, and other customers, both domestically and internationally. Additionally, Yankuang Energy Group diversifies its income through its chemicals segment, where it produces and sells various chemical products derived from coal, such as methanol and other derivatives. Furthermore, the company's power generation business contributes to its revenue by generating and selling electricity to the grid. These activities are supported by strategic partnerships and joint ventures, allowing Yankuang Energy Group to expand its market reach and enhance its operational efficiencies.

Yankuang Energy Group Company Sponsored ADR Class H Financial Statement Overview

Summary

Yankuang Energy Group demonstrates strong operational efficiency with robust profit margins despite revenue fluctuations. The balance sheet reflects a stable but increasingly leveraged position, which could impact future flexibility. Cash flow shows adequate operating cash generation, though conversion to free cash flow is a potential concern. Overall, the company is financially sound, but attention to leverage and cash flow conversion is advised to maintain long-term stability.

Income Statement

The company's revenue has seen significant fluctuations over the years with a decline in 2024 and TTM compared to 2023. The gross profit margin for TTM is approximately 35.8%, indicating strong production efficiency. However, the net profit margin has declined from 10.8% in 2024 to 10.9% in TTM, which suggests slight erosion in bottom-line profitability. EBIT and EBITDA margins remain robust at 19.3% and 24.2% respectively for TTM, showcasing good operational efficiency. Despite the reduction in revenue, the company maintains strong profitability metrics.

Balance Sheet

The balance sheet indicates a stable financial position with a slight increase in total assets over the period. The debt-to-equity ratio increased to 1.09 in TTM, reflecting higher financial leverage, which could pose a risk if not managed properly. The return on equity (ROE) for TTM is 16.3%, illustrating effective use of shareholders' funds, though this is a decrease from 18.2% in 2024. The equity ratio stands at 23.4%, indicating a moderate level of financial stability and reliance on debt financing.

Cash Flow

The cash flow statement highlights a decrease in free cash flow from 2024 to TTM, with a growth rate of 9.3%. The operating cash flow to net income ratio is 1.25 for TTM, suggesting solid cash generation relative to net income. However, the free cash flow to net income ratio stands at 0.41, indicating a lower conversion of earnings into free cash flow, which could be a concern if sustained.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
128.29B	139.12B	150.02B	200.83B	151.99B	214.99B
	Gross Profit
45.93B	49.81B	60.93B	82.22B	44.65B	28.42B
	EBIT
24.81B	26.86B	36.96B	54.10B	24.26B	14.19B
	EBITDA
31.07B	46.26B	56.31B	74.53B	40.03B	23.17B
	Net Income Common Stockholders
14.01B	15.06B	20.14B	33.82B	16.44B	7.61B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
42.38B	38.51B	37.70B	45.27B	45.83B	24.69B
	Total Assets
366.77B	358.55B	354.28B	295.80B	288.70B	258.91B
	Total Debt
93.20B	79.67B	77.94B	75.01B	98.42B	94.98B
	Net Debt
50.99B	41.32B	40.34B	29.84B	52.84B	70.44B
	Total Liabilities
229.55B	225.54B	235.94B	167.71B	192.21B	179.13B
	Stockholders Equity
85.67B	82.59B	72.69B	94.74B	68.19B	54.12B
Cash Flow		Free Cash Flow
5.75B	5.27B	-2.02B	35.27B	25.74B	10.22B
	Operating Cash Flow
17.47B	22.34B	16.17B	53.45B	36.18B	22.23B
	Investing Cash Flow
-9.94B	-9.73B	-12.20B	-12.63B	-4.83B	-13.58B
	Financing Cash Flow
-13.20B	-12.39B	-32.51B	-43.27B	-8.04B	-14.41B

Yankuang Energy Group Company Sponsored ADR Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YZCAY, the sentiment is Positive. The current price of 11.88 is above the 20-day moving average (MA) of 11.15, above the 50-day MA of 10.76, and above the 200-day MA of 11.56, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 75.01 is Negative, neither overbought nor oversold. The STOCH value of 89.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for YZCAY.

Yankuang Energy Group Company Sponsored ADR Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BTU	80 Outperform	$1.59B	4.90	10.33%	2.28%	-7.42%	-26.06%
ARLP	80 Outperform	$3.34B	12.22	14.71%	10.76%	-8.53%	-53.44%
YZCAY	76 Outperform	$15.51B	6.03	19.26%	13.73%	3.22%	―
NRP	70 Outperform	$1.29B	9.42	31.98%	3.06%	-19.21%	-30.92%
AMR	61 Neutral	$1.46B	55.51	1.66%	0.36%	-23.34%	-95.18%
HCC	59 Neutral	$2.39B	22.58	5.20%	0.70%	-21.04%	-75.78%
Sector *	57 Neutral	$7.14B	3.05	-3.47%	5.74%	0.77%	-49.70%