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Sinopec Oilfield Service Corp (600871) Fair Value & Analysis

Energy · CN · Market cap 41.9B CNY (≈ $6.3B) · ISIN CNE000000HS3

What is Sinopec Oilfield Service Corp really worth?

SO Sinopec Oilfield Service Corp 600871 · SHG
Price¥2.21
Fair Value¥0.4900
Upside−77.8%
Quality47/100

Below-average quality, and trading another 351% above our fair value of ¥0.4900.

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Strengths

Low debt · generates free cash flow

Risks

!Mixed Growth (revenue 5y +3.5 %/yr)
!Thin margins · 0.8% net margin
!Mixed vs. peers (7/14)
!Narrow moat 27/100
!Evidence only low, so the estimate is less certain
!Weak on future: 12 out of 100
!Weak on past: 28 out of 100
Evidence: Low Range ¥0.3600 – ¥0.7100

Fair value as of: Aug 13, 2026

From 26 valuation models · updated 22 days ago

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (¥0.7100). The favourable scenario is already priced in.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • Solid but not exceptional quality (47/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (¥0.3600 to ¥0.7100) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

¥4.27 ¥1.65 Fair Value ¥0.4900 Mar 2021 Sep 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 ¥1.65 – ¥4.27 · fair‑value band ¥0.3600 – ¥0.7100 · the ¥2.21 price screens above the ¥0.4900 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 2 fiscal years are left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Sinopec Oilfield Service Corp (600871) currently trades at ¥2.21, while our model-based Fair Value estimate is ¥0.4900, implying the stock looks roughly 351.1% overvalued today. The Quality Score stands at 47/100 (below-average quality), in the Energy sector. Bull case: the Growth DCF group reads highest at a median of ¥2.41 per share, and 8 of the 26 models we run sit above the ¥2.21 price. Bear case: the Asset-Based group reads lowest at ¥0.3300, and 18 of the 26 models stay below the price. Evidence for this calculation is low.

Over the trailing twelve months, Sinopec Oilfield Service Corp generated revenue of 81.1B CNY at a net margin of 0.8%. Revenue grew 2.4% year over year. It earns a return on equity of 6.9%. Net debt stands at 24.8B CNY. Fundamentals as of Aug 13, 2026

Our scenario range runs from ¥0.3600 (bear case) to ¥0.7100 (bull case); at ¥2.21, the current price sits above 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 50% below its 52-week high and 15% above its 52-week low, currently below its 200-day average. For context, the median of 10 Energy peers we cover trades at −44% fair-value upside, at −78%, 600871 screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly ¥0.0204 per share, which is 4.2 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

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
FCF DCF best evidence ¥2.80 ¥4.80 ¥8.21 77
Growth DCF ¥2.79 ¥4.65 ¥7.76 75
Residual Income ¥0.4000 ¥0.4300 ¥0.4600 75
All 26 models by family
DCF Models
FCF DCF best evidence ¥2.80 ¥4.80 ¥8.21 77
Owner Earnings ¥1.29 ¥2.13 ¥3.55 74
5Y Revenue Exit ¥1.64 ¥2.40 ¥3.38 72
5Y EBITDA Exit ¥1.87 ¥2.87 ¥4.07 74
5Y P/E Exit ¥1.27 ¥1.66 ¥2.05 71
10Y Revenue Exit ¥1.98 ¥2.83 ¥4.02 66
10Y EBITDA Exit ¥2.16 ¥3.17 ¥4.59 67
10Y P/E Exit ¥1.77 ¥2.29 ¥2.92 64
Earnings-Based
Graham-Dodd ¥0.2400 ¥1.04 ¥1.43 61
Lynch FV ¥0.2700 ¥0.3900 ¥0.5000 58
PEG = 1.0 ¥0.2700 ¥0.3900 ¥0.5000 55
EPV ¥0.8700 ¥0.9800 ¥1.08 72
Dividend Discount
Gordon GGM ¥0.3000 ¥0.6300 ¥1.00 64
DDM Multi-Stage ¥0.3000 ¥0.5300 ¥0.6600 64
Multiples
P/E Multiple ¥0.3600 ¥0.4900 ¥0.6100 61
P/S Multiple ¥0.4400 ¥0.5900 ¥0.7400 56
P/B Multiple ¥0.4400 ¥0.5900 ¥0.7400 53
EV/EBIT ¥0.9400 ¥1.19 ¥1.43 65
EV/EBITDA ¥1.53 ¥1.97 ¥2.42 66
EV/Revenue ¥1.10 ¥1.48 ¥1.86 53
Asset-Based
NCAV (Graham) ¥0.2400 ¥0.3300 ¥0.4900 52
Growth DCF
Growth DCF ¥2.79 ¥4.65 ¥7.76 75
Rev-Margin DCF ¥1.64 ¥2.41 ¥3.40 72
Economic Profit
Residual Income ¥0.4000 ¥0.4300 ¥0.4600 75
ROIC Compounder ¥0.9500 ¥1.20 ¥1.50 71
Growth Earnings
Growth-Adj P/E ¥0.3600 ¥0.5200 ¥0.6700 66

Widest divergence: Growth DCF (¥2.41) versus Asset-Based (¥0.3300). Highest evidence: FCF DCF (77).

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Key figures & financial health

P/E ratio 74.7 as of Jun 15, 2026
P/S ratio 0.61 P/E × margin
EPS (TTM) ¥0.0300 price ÷ EPS = P/E 74.7
Dividend yield 1.5% payout 108%
Net margin 0.8% FY2025
Return on equity 6.9% TTM
More key figures
Profitability
Return on assets (EBIT) 1.3% avg 5y
Operating margin 3.6% TTM
Growth
Revenue (TTM) 81.1B CNY TTM
Revenue growth (YoY) +2.4% 3y avg +3.0%
EPS growth (YoY) −8.3%
Balance sheet & cash flow
Free cash flow 3.9B CNY FY2025
Net debt 24.8B CNY FY2025 · ≈ 6.4 yrs of FCF

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

Quality Score breakdown

Overall quality 47/100

Of which business quality 45 · Market factors (momentum, volatility) 37

Profitability 33
Margins and returns on capital today
Quality Growth 45
Are margins and returns improving?
Cashflow 52
Earnings quality: real cash, not paper profit
Fin. Strength 8
Balance sheet, leverage, solvency risk
Investment 80
Disciplined investing over empire-building
Low Volatility 60
Calm price path (market factor)
Momentum 29
Price trend over the last 3–12 months (market factor)
52W Momentum 25
Distance to the 52-week high (market factor)
Net Issuance 83
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Sinopec Oilfield Service Corporation provides integrated petroleum engineering and oilfield technical services in China and internationally.

Full company description

Sinopec Oilfield Service Corporation provides integrated petroleum engineering and oilfield technical services in China and internationally. It offers data acquisition, processing, interpretation to technology research and development, equipment manufacturing, and reservoir service delivering integrated geophysical solutions and support for oil and gas fields; and drilling and completion, drilling technology services, drilling tool manufacturing, and forming proprietary drilling technologies services for petroleum engineering. It also offers pre-drill prediction; real-time acquisition and monitoring; post-drill evaluation for exploration and development; and data acquisition, processing, interpretation, methodology research, and development of instruments and software; reservoir stimulation, oil and gas well testing, workover and sidetracking, technical services, and tailored solutions for domestic and international oil and gas exploration and production; and engages in the provision of feasibility studies; design, procurement, and construction services for onshore and offshore oil and gas fields; long-distance pipeline, oil and gas transporting process, storage and transportation, petrochemical supporting, building construction, water resources and hydropower, ports and waterways, electricity transmission, and distribution projects; LNG projects; and coal chemical engineering, geothermal utilization, energy saving, and municipal roads and bridges, as well as manufacturing of pressure vessels. The company was formerly known as Sinopec Yizheng Chemical Fibre Company Limited and changed its name to Sinopec Oilfield Service Corporation in March 2015. The company was founded in 1993 and is headquartered in Beijing, the People's Republic of China. Sinopec Oilfield Service Corporation is a subsidiary of China Petrochemical Corporation.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Sinopec Oilfield Service Corp reported revenue of 80.7B CNY in FY2025 versus 69.5B CNY in FY2021, a compound +3.8%/yr. Reported net income was 659M CNY in FY2025, compounding +38.4%/yr from FY2021. FY2021 was a trough year, so the rate overstates the trend.

Growth Quality 54/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
80.7B CNY
Latest YoY
−0.5%
Avg. revenue 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.
+3.0%
Avg. revenue 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.
+3.5%
Avg. revenue 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.
+8.6%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+31.2% (29.7 + 1.5)
Revenue +3.8%/yr
FY21 69.5B CNY
FY22 73.8B CNY
FY23 80.0B CNY
FY24 81.1B CNY
FY25 80.7B CNY
Net income +38.4%/yr
FY21 180M CNY
FY22 476M CNY
FY23 589M CNY
FY24 632M CNY
FY25 659M CNY
Character of growth · EPS growth decomposed (2014-2025) −3.3 % p.a.
Revenue per share −2.9 %

of which total revenue +0.4 % · buybacks/dilution −3.3 %

EBIT margin +13.3 %
Tax rate +2.3 %
Residual (interest, one-offs) −14.2 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

600871 screens 351% overvalued. Compare with Noble Corporation →

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Cite: Fair Value Calculator (2026). "Sinopec Oilfield Service Corp Fair Value". https://www.fairvalue-calculator.com/stock/600871

Peer Group

Oil & Gas Drilling · 35 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 47 · Above median
Fair Value upside −78% · Bottom 25%
Return on equity (TTM) 7% · Above median
Return on assets 2% · Below median
Net margin (TTM) 1% · Below median
Operating margin (TTM) 4% · Bottom 25%
Revenue growth 2% · Above median
Dividend yield (TTM) 1.5% · Above median
Debt / equity 0.12× · Lower than 75% of peers

Valuation Multiples vs Oil & Gas Drilling median · lower = cheaper

P/E (TTM) 74.7× · Pricier than 75% of peers
P/B 4.53× · Pricier than 75% of peers
P/S (TTM) 0.52× · Cheaper than 75% of peers
P/FCF 1.6× · Cheaper than 75% of peers
EV/EBITDA 7.6× · Pricier than median

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE12 · sector 0
PAST28 · sector 20
HEALTH94 · sector 80
DIVIDEND29 · sector 29

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Oil & gas

Similar stocks

10 more Oil & Gas Drilling stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Noble Corporation NE $45.76 $23.09 −50%
Transocean Ltd RIG $5.70 $2.16 −62%
Valaris Limited VAL $85.21 $58.91 −31%
Patterson-UTI Energy, Inc PTEN $12.13 $12.20 +1%
Helmerich & Payne, Inc HP $42.55 $9.25 −78%
Seadrill Limited SDRL $46.72 $10.17 −78%
Odfjell Drilling Ltd ODL kr 95.30 kr 53.75 −44%
Arabian Drilling Company 2381 88.90 SAR 11.09 SAR −88%
Borr Drilling Limited BORR kr 41.63 kr 26.64 −36%
Nabors Industries Ltd NBR $91.71 $209.14 +128%

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Frequently asked questions

Is Sinopec Oilfield Service Corp (600871) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ¥0.4900 versus a price of ¥2.21, about −78% upside (overvalued).
What is the fair value of 600871?
Our model-based fair value for Sinopec Oilfield Service Corp is ¥0.4900 (as of Aug 13, 2026), built from audited fundamentals. The current price: ¥2.21.
What is the quality score of 600871?
Sinopec Oilfield Service Corp has a Quality Score of 47/100. 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 Sinopec Oilfield Service Corp (600871)?
Sinopec Oilfield Service Corp reported trailing-twelve-month revenue of about 81.1B CNY (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 600871?
The net profit margin of Sinopec Oilfield Service Corp is about 0.8%, meaning it keeps roughly 0.8% of revenue as net income. Based on the latest reported figures.
Does Sinopec Oilfield Service Corp pay a dividend?
Sinopec Oilfield Service Corp currently shows a dividend yield of about 1.47% relative to its recent price (as of Aug 13, 2026).
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