Risk factor
Very high price volatility
Profitability factor
Greatly undervalued vs peers
About
CF Energy Corp., headquartered in Markham, Canada, functions as an integrated energy provider and natural gas distributor primarily operating within the People's Republic of China. Its business is structured into three key segments: Gas Distribution Utility, Integrated Smart Energy, and Smart Mobility. Through its gas distribution operations, the company supplies natural gas to industrial, commercial, and residential end-users, in addition to offering natural gas pipeline installation and connection services. It also oversees 2.0 kilometers of pipeline for natural gas transport. The Smart Mobility division manages two natural gas refueling stations, situated in Sanya (Hainan Province) and Changsha (Hunan Province), which cater to a variety of vehicles including passenger cars, taxis, buses, and trucks. Furthermore, CF Energy is engaged in developing integrated smart energy projects, such as those in Haitang Bay and Meishan districts. These initiatives harness diverse clean energy sources like solar, hydro, electricity, and natural gas to provide cooling, heating, and hot water solutions. The company's service portfolio also encompasses electric vehicle battery swap programs, construction, warehousing, and charity services. Established in 1995, the entity was formerly known as Changfeng Energy Inc. before adopting its current name.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. Specifically, the stock is 'cheap' on P/E, neutral on EV/EBITD.