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FESCO Group (600861) Fair Value & Analysis

Industrials · CN · Market cap 7.5B CNY

FG FESCO Group 600861 · SHG
Price¥13.05
Fair Value¥45.46
Upside+248.4%
Quality52/100
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Healthy Growth
Thin margins · 1.8% net margin
Low debt · generates free cash flow
7.61% dividend yield
Ranks above peers (10/12)
Narrow moat 35/100
Evidence: Medium Range ¥34.10 – ¥56.59 Share as image

Fair value as of: Aug 13, 2026

From 26 valuation models · updated yesterday

Share price −0.8% over the past month.

A solid business, screening 248% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (¥34.10). The market is more pessimistic than our downside scenario.
  • Solid quality (52/100) 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)

¥28.07 ¥12.16 Fair Value ¥45.46 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ¥12.16 – ¥28.07 · fair‑value band ¥34.10 – ¥56.59 · the ¥13.05 price screens below the ¥45.46 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

FESCO Group (600861) currently trades at ¥13.05, while our model-based Fair Value estimate is ¥45.46, implying the stock looks roughly 248.4% undervalued today. The Quality Score stands at 52/100 (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, FESCO Group generated revenue of 45.7B CNY at a net margin of 1.8%. Revenue grew 5.0% year over year. It earns a return on equity of 13.4%. The balance sheet holds a net cash position of 7.1B CNY. Fundamentals as of Aug 13, 2026

Our scenario range runs from ¥34.10 (bear case) to ¥56.59 (bull case); at ¥13.05, 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 42% below its 52-week high, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at 18% fair-value upside, at 248%, 600861 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
Growth DCF ¥46.59 ¥76.80 ¥125.48 80
Residual Income ¥13.20 ¥17.40 ¥49.68 76
Rev-Margin DCF ¥45.38 ¥70.84 ¥124.12 74
All 26 models by family
DCF Models
FCF DCF ¥48.76 ¥67.98 ¥127.90 38
Owner Earnings ¥47.83 ¥90.02 ¥175.32 31
5Y Revenue Exit ¥42.35 ¥63.59 ¥108.04 39
5Y EBITDA Exit ¥42.82 ¥64.54 ¥107.10 41
5Y P/E Exit ¥48.50 ¥91.73 ¥150.56 38
10Y Revenue Exit ¥43.68 ¥79.71 ¥102.51 36
10Y EBITDA Exit ¥45.06 ¥80.71 ¥141.75 37
10Y P/E Exit ¥49.11 ¥92.65 ¥164.03 35
Earnings-Based
Graham-Dodd ¥14.05 ¥98.00 ¥137.52 54
Lynch FV ¥50.63 ¥72.33 ¥94.02 50
PEG = 1.0 ¥50.63 ¥72.33 ¥94.02 46
EPV ¥32.23 ¥35.25 ¥37.85 59
Dividend Discount
Gordon GGM ¥6.34 ¥12.64 ¥19.14 70
DDM Multi-Stage ¥6.34 ¥10.93 ¥13.35 61
Multiples
P/E Multiple ¥34.10 ¥45.46 ¥56.83 63
P/S Multiple ¥26.35 ¥35.13 ¥43.91 58
P/B Multiple ¥26.35 ¥35.13 ¥43.91 55
EV/EBIT ¥48.82 ¥60.71 ¥72.61 53
EV/EBITDA ¥39.55 ¥48.35 ¥57.15 54
EV/Revenue ¥37.19 ¥47.50 ¥57.81 43
Asset-Based
NCAV (Graham) ¥6.45 ¥8.65 ¥12.91 50
Growth DCF
Growth DCF ¥46.59 ¥76.80 ¥125.48 80
Rev-Margin DCF ¥45.38 ¥70.84 ¥124.12 74
Economic Profit
Residual Income ¥13.20 ¥17.40 ¥49.68 76
ROIC Compounder ¥32.23 ¥35.25 ¥37.85 72
Growth Earnings
Growth-Adj P/E ¥67.21 ¥96.01 ¥124.81 68

Widest divergence: Growth Earnings (¥96.01) versus Asset-Based (¥8.65). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 45.7B CNY
Revenue growth (YoY) +5.0%
Net margin 1.8%
Return on equity 13.4%
Free cash flow 1.3B CNY FY2025
P/E ratio 8.8
More key figures
Operating margin 4.9%
EPS (TTM) ¥1.49
Dividend yield 7.6%
EPS growth (YoY) -55.5%
Net cash 7.1B CNY FY2024

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 52/100

Of which business quality 56 · Market factors (momentum, volatility) 35

Profitability 52
Margins and returns on capital today
Quality Growth 58
Are margins and returns improving?
Cashflow 47
Earnings quality: real cash, not paper profit
Fin. Strength 92
Balance sheet, leverage, solvency risk
Investment 33
Disciplined investing over empire-building
Low Volatility 93
Calm price path (market factor)
Momentum 12
Price trend over the last 3–12 months (market factor)
52W Momentum 7
Distance to the 52-week high (market factor)
Net Issuance 40
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

FESCO Group Co., Ltd. operates in the human resources service industry in China. The company offers human resources services, including personnel management, welfare services, business outsourcing, salary and benefits, recruitment and flexible employment, and consulting services to various organizations.

Full company description

FESCO Group Co., Ltd. operates in the human resources service industry in China. The company offers human resources services, including personnel management, welfare services, business outsourcing, salary and benefits, recruitment and flexible employment, and consulting services to various organizations. It also provides vocational education, international education, international talent services, talent development consulting, human resources management consulting, legal consulting, background checks, and off-the-job placement solutions. The company was formerly known as Beijing Urban-Rural Commercial (Group)Co., Ltd. FESCO Group Co., Ltd. was founded in 1979 and is based in Beijing, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

FESCO Group reported revenue of ¥45.2B in FY2025 versus ¥697M in FY2021, a compound +183.7%/yr. Reported net income was ¥1.2B in FY2025.

Growth Quality 90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
45.2B CNY
Latest YoY
+5.0%
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.
+11.8%
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.
+129.9%
Avg. growth/yr (31Y) 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.
+12.6%
Revenue +183.7%/yr
FY21 ¥697M
FY22 ¥32.3B
FY23 ¥38.3B
FY24 ¥43.0B
FY25 ¥45.2B
Net income
FY21 −¥63.5M
FY22 ¥414M
FY23 ¥548M
FY24 ¥791M
FY25 ¥1.2B
Character of growth · EPS growth decomposed (2013-2024) +16.5 % p.a.
Revenue per share +29.9 pp

of which total revenue +35.5 pp · buybacks/dilution −5.6 pp

EBIT margin −6.5 pp
Tax rate −0.8 pp
Residual (interest, one-offs) −6.1 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "FESCO Group Fair Value". https://www.fairvalue-calculator.com/stock/600861

Peer Group

Staffing & Employment Services · 85 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 52 · Below median
Return on equity (TTM) 13% · Above median
Return on assets 3% · Below median
Net margin (TTM) 2% · Above median
Operating margin (TTM) 5% · Above median
Revenue growth 5% · Above median
Dividend yield (TTM) 7.6% · Top 25%
Debt / equity 0.01× · Lower than median

Valuation Multiples vs Staffing & Employment Services median · lower = cheaper

P/E (TTM) 8.8× · Cheaper than 75% of peers
P/B 1.03× · Cheaper than median
P/S (TTM) 0.16× · Cheaper than 75% of peers
P/FCF 0.9× · Cheaper 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 0 · sector 41
FUTURE 25 · sector 1
PAST 54 · sector 36
HEALTH 100 · sector 95
DIVIDEND 100 · sector 60

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.

Similar stocks

10 more Staffing & Employment Services stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Adecco Group ADEN CHF 23.14 CHF 24.08 +4%
Korn Ferry, KFY $83.30 $114.56 +38%
Robert Half Inc RHI $41.55 $20.51 -51%
TriNet Group TNET $66.83 $97.07 +45%
ManpowerGroup Inc MAN $56.22 $23.19 -59%
Insperity, Inc NSP $50.39 $17.34 -66%
Grupa Pracuj S.A GPP 55.50 PLN 65.45 PLN +18%
Barrett Business Services, Inc BBSI $31.39 $38.11 +21%
Maharah for Human Resources Company 1831 5.36 SAR 6.87 SAR +28%
Kforce Inc KFRC $57.71 $31.40 -46%

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Frequently asked questions

Is FESCO Group (600861) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ¥45.46 versus a price of ¥13.05, about +248% (undervalued).
What is the fair value of 600861?
Our model-based fair value for FESCO Group is ¥45.46 (as of Aug 13, 2026), built from audited fundamentals. The current price is ¥13.05.
What is the quality score of 600861?
FESCO Group has a Quality Score of 52/100. 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 FESCO Group (600861)?
FESCO Group reported trailing-twelve-month revenue of about 45.7B CNY (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 600861?
The net profit margin of FESCO Group is about 1.8%, meaning it keeps roughly 1.8% of revenue as net income. Based on the latest reported figures.
Does FESCO Group pay a dividend?
FESCO Group currently shows a dividend yield of about 7.61% relative to its recent price (as of Aug 13, 2026).

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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