WallStSmart

China Yuchai International Limited (CYD)vsFerrari NV (RACE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

China Yuchai International Limited generates 242% more annual revenue ($24.66B vs $7.20B). RACE leads profitability with a 22.2% profit margin vs 2.2%. CYD appears more attractively valued with a PEG of 0.43. CYD earns a higher WallStSmart Score of 65/100 (C+).

CYD

Buy

65

out of 100

Grade: C+

Growth: 8.7Profit: 4.0Value: 6.0Quality: 6.8
Piotroski: 6/9

RACE

Buy

50

out of 100

Grade: C-

Growth: 5.3Profit: 9.0Value: 2.7Quality: 6.5
Piotroski: 6/9Altman Z: 1.44
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CYDSignificantly Overvalued (-30.7%)

Margin of Safety

-30.7%

Fair Value

$39.50

Current Price

$56.76

$17.26 premium

UndervaluedFair: $39.50Overvalued
RACESignificantly Overvalued (-44.3%)

Margin of Safety

-44.3%

Fair Value

$243.71

Current Price

$346.99

$103.28 premium

UndervaluedFair: $243.71Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CYD6 strengths · Avg: 8.8/10
PEG RatioValuation
0.4310/10

Growing faster than its price suggests

EPS GrowthGrowth
109.1%10/10

Earnings expanding 109.1% YoY

Debt/EquityHealth
0.229/10

Conservative balance sheet, low leverage

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
23.0%8/10

Revenue surging 23.0% year-over-year

Free Cash FlowQuality
$2.07B8/10

Generating 2.1B in free cash flow

RACE4 strengths · Avg: 9.0/10
Return on EquityProfitability
39.3%10/10

Every $100 of equity generates 39 in profit

Market CapQuality
$62.33B9/10

Large-cap with strong market position

Profit MarginProfitability
22.2%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
29.5%8/10

Strong operational efficiency at 29.5%

Areas to Watch

CYD4 concerns · Avg: 3.3/10
P/E RatioValuation
26.9x4/10

Moderate valuation

Return on EquityProfitability
5.9%3/10

ROE of 5.9% — below average capital efficiency

Profit MarginProfitability
2.2%3/10

2.2% margin — thin

Operating MarginProfitability
4.0%3/10

Operating margin of 4.0%

RACE4 concerns · Avg: 4.0/10
P/E RatioValuation
33.8x4/10

Premium valuation, high expectations priced in

Price/BookValuation
13.0x4/10

Trading at 13.0x book value

Revenue GrowthGrowth
3.2%4/10

3.2% revenue growth

EPS GrowthGrowth
1.3%4/10

1.3% earnings growth

Comparative Analysis Report

WallStSmart Research

Bull Case : CYD

The strongest argument for CYD centers on PEG Ratio, EPS Growth, Debt/Equity. Revenue growth of 23.0% demonstrates continued momentum. PEG of 0.43 suggests the stock is reasonably priced for its growth.

Bull Case : RACE

The strongest argument for RACE centers on Return on Equity, Market Cap, Profit Margin. Profitability is solid with margins at 22.2% and operating margin at 29.5%.

Bear Case : CYD

The primary concerns for CYD are P/E Ratio, Return on Equity, Profit Margin. Thin 2.2% margins leave little buffer for downturns.

Bear Case : RACE

The primary concerns for RACE are P/E Ratio, Price/Book, Revenue Growth.

Key Dynamics to Monitor

CYD profiles as a growth stock while RACE is a value play — different risk/reward profiles.

CYD carries more volatility with a beta of 1.29 — expect wider price swings.

CYD is growing revenue faster at 23.0% — sustainability is the question.

CYD generates stronger free cash flow (2.1B), providing more financial flexibility.

Bottom Line

CYD scores higher overall (65/100 vs 50/100) and 23.0% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

China Yuchai International Limited

CONSUMER CYCLICAL · AUTO MANUFACTURERS · USA

China Yuchai International Limited manufactures, assembles and sells diesel and natural gas engines in the People's Republic of China and internationally. The company is headquartered in Singapore.

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Ferrari NV

CONSUMER CYCLICAL · AUTO MANUFACTURERS · USA

Ferrari NV designs, designs, produces and sells high performance sports cars. The company is headquartered in Maranello, Italy.

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