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Shareate Tools Ltd (688257) Fair Value & Analysis

Industrials · CN · Market cap 22.4B CNY (≈ $3.3B) · ISIN CNE100004ZR8

What is Shareate Tools Ltd really worth?

ST Shareate Tools Ltd 688257 · SHG
Price¥51.11
Fair Value¥11.87
Upside−76.8%
Quality48/100

Below-average quality, and trading another 330% above our fair value of ¥11.87.

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Strengths

Solidly profitable · 16.0% net margin
Wide moat 72/100

Risks

!Expensive Growth (revenue 5y +27.9 %/yr)
!Low debt · negative free cash flow
!Mixed vs. peers (6/13)
!Evidence only medium, so the estimate is less certain
!Weak on dividend: 8 out of 100

For context

·0.41% dividend yield
Evidence: Medium Range ¥5.87 – ¥14.86

Fair value as of: Aug 19, 2026

From 17 valuation models · updated 17 days ago

Share price −9.5% over the past month.

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 (¥14.86). The favourable scenario is already priced in.
  • Solid but not exceptional quality (48/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (¥5.87 to ¥14.86) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

¥111.80 ¥6.25 Fair Value ¥11.87 Oct 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 19, 2026.

How to read this chart

58‑month range ¥6.25 – ¥111.80 · fair‑value band ¥5.87 – ¥14.86 · the ¥51.11 price screens above the ¥11.87 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 19, 2026.

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Analysis

Shareate Tools Ltd (688257) currently trades at ¥51.11, while our model-based Fair Value estimate is ¥11.87, implying the stock looks roughly 330.5% overvalued today. The Quality Score stands at 48/100 (below-average quality), in the Industrials sector. Bull case: the DCF Models group reads highest at a median of ¥20.41 per share, and 0 of the 17 models we run sit above the ¥51.11 price. Bear case: the Dividend Discount group reads lowest at ¥3.84, and 17 of the 17 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Shareate Tools Ltd generated revenue of 3.1B CNY at a net margin of 16.0%. Revenue grew 111.6% year over year. It earns a return on equity of 19.5%. Net debt stands at 353M CNY. Fundamentals as of Aug 19, 2026

Our scenario range runs from ¥5.87 (bear case) to ¥14.86 (bull case); at ¥51.11, 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 47% below its 52-week high, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at −35% fair-value upside, at −77%, 688257 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 ¥0.8073 per share, which is 6.8 % 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
Residual Income ¥5.85 ¥6.51 ¥10.45 75
EPV ¥7.70 ¥8.76 ¥9.69 74
ROIC Compounder ¥8.73 ¥11.89 ¥14.57 72
All 17 models by family
DCF Models
Owner Earnings ¥9.72 ¥20.41 ¥42.87 71
Earnings-Based
Graham-Dodd ¥4.53 ¥31.58 ¥44.32 63
Lynch FV ¥10.87 ¥15.52 ¥20.18 61
PEG = 1.0 ¥10.87 ¥15.52 ¥20.18 57
EPV ¥7.70 ¥8.76 ¥9.69 74
Dividend Discount
Gordon GGM ¥2.19 ¥4.56 ¥7.23 66
DDM Multi-Stage ¥2.19 ¥3.84 ¥4.78 66
Multiples
P/E Multiple ¥10.49 ¥13.99 ¥17.48 63
P/S Multiple ¥8.49 ¥11.32 ¥14.15 58
P/B Multiple ¥8.49 ¥11.32 ¥14.15 55
EV/EBIT ¥12.56 ¥16.30 ¥20.05 66
EV/EBITDA ¥13.30 ¥17.29 ¥21.27 67
EV/Revenue ¥9.35 ¥12.78 ¥16.22 54
Asset-Based
NCAV (Graham) ¥3.32 ¥4.45 ¥6.64 54
Economic Profit
Residual Income ¥5.85 ¥6.51 ¥10.45 75
ROIC Compounder ¥8.73 ¥11.89 ¥14.57 72
Growth Earnings
Growth-Adj P/E ¥14.22 ¥20.31 ¥26.40 67

Widest divergence: DCF Models (¥20.41) versus Dividend Discount (¥3.84). Highest evidence: Residual Income (75).

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Key figures & financial health

P/E ratio 36.5
P/S ratio 3.45 P/E × margin
EPS (TTM) ¥1.40 price ÷ EPS = P/E 36.5
Dividend yield 0.4% payout 14.8%
Net margin 9.5% FY2025
Return on equity 19.5% TTM
More key figures
Profitability
Return on assets (EBIT) 6.4% avg 5y
Operating margin 35.6% TTM
Growth
Revenue (TTM) 3.1B CNY TTM
Revenue growth (YoY) +112% 3y avg +28.3%
EPS growth (YoY) +576%
Balance sheet & cash flow
Free cash flow −15.2M CNY FY2025
Net debt 353M CNY FY2025

Figures from reported company fundamentals · as of Aug 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 48/100

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

Profitability 51
Margins and returns on capital today
Quality Growth 69
Are margins and returns improving?
Cashflow 14
Earnings quality: real cash, not paper profit
Fin. Strength 78
Balance sheet, leverage, solvency risk
Investment 57
Disciplined investing over empire-building
Low Volatility 22
Calm price path (market factor)
Momentum 48
Price trend over the last 3–12 months (market factor)
52W Momentum 69
Distance to the 52-week high (market factor)
Net Issuance 0
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

Shareate Tools Ltd. engages in the research, development, production, and sales of cemented carbide and drilling tools in China and internationally.

Full company description

Shareate Tools Ltd. engages in the research, development, production, and sales of cemented carbide and drilling tools in China and internationally. The company offers mining tri-cone drill bit and water well bits; DTH hammer and bit; horizontal directional drilling products comprises reamers and single roller cone bit; core barrel roller bit; raise bore tools; and top hammer drilling tools. It also provides mining tungsten carbide products, including tungsten carbide button, carbide substrate, shield machine tool, coal cutter pick, and tungsten carbide tubular electrode; precision components; cutting tools such as carbide rod and inserts, and round tools; tungsten carbide die products comprising carbide plates, cold headings, hobs, and powder metallurgy dies; and cermet products. The company was formerly known as Kingdream Shareate Tools Ltd. and changed its name to Shareate Tools Ltd. in May 2012. Shareate Tools Ltd. was founded in 1973 and is headquartered in Suzhou, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shareate Tools Ltd reported revenue of 2.5B CNY in FY2025 versus 894M CNY in FY2021, a compound +29.3%/yr. Reported net income was 237M CNY in FY2025, compounding +14.8%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
2.5B CNY
Latest YoY
+34.3%
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.
+28.3%
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.
+27.9%
Avg. revenue growth/yr (12Y) 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.
+17.4%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
−1.7% (−2.1 + 0.4)
Revenue +29.3%/yr
FY21 894M CNY
FY22 1.2B CNY
FY23 1.5B CNY
FY24 1.9B CNY
FY25 2.5B CNY
Net income +14.8%/yr
FY21 136M CNY
FY22 147M CNY
FY23 163M CNY
FY24 181M CNY
FY25 237M CNY
Character of growth · EPS growth decomposed (2014-2025) +11.4 % p.a.
Revenue per share +10.3 %

of which total revenue +23.3 % · buybacks/dilution −10.6 %

EBIT margin +2.6 %
Tax rate −0.9 %
Residual (interest, one-offs) −0.7 %

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).

688257 screens 330% overvalued. Compare with Techtronic Industries Company →

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Cite: Fair Value Calculator (2026). "Shareate Tools Ltd Fair Value". https://www.fairvalue-calculator.com/stock/688257

Peer Group

Tools & Accessories · 122 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 48 · Bottom 25%
Fair Value upside −77% · Bottom 25%
Return on equity (TTM) 20% · Top 25%
Return on assets 8% · Top 25%
Net margin (TTM) 16% · Top 25%
Operating margin (TTM) 35% · Top 25%
Revenue growth 112% · Top 25%
Dividend yield (TTM) 0.4% · Bottom 25%
Debt / equity 0.02× · Lower than median

Valuation Multiples vs Tools & Accessories median · lower = cheaper

P/E (TTM) 36.5× · Pricier than median
P/B 9.49× · Pricier than 75% of peers
P/S (TTM) 7.26× · Pricier than 75% of peers
EV/EBITDA 29.7× · Pricier than 75% of peers

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 4
FUTURE100 · sector 16
PAST78 · sector 28
HEALTH99 · sector 97
DIVIDEND8 · sector 40

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.

None of the checked exposures detected

Similar stocks

10 more Tools & Accessories stocks, each showing price versus our Fair Value estimate (as of Aug 19, 2026).

Stock Price Fair Value vs Fair Value
Techtronic Industries Company 0669 HK$138.50 HK$78.56 −43%
Snap-on Incorporated SNA $391.86 $344.67 −12%
RBC Bearings Incorporated RBC $488.69 $179.94 −63%
Lincoln Electric Holdings LECO $284.90 $151.86 −47%
Stanley Black & Decker, Inc SWK $99.24 $52.80 −47%
AB SKF (publ) SKFB kr 275.40 kr 180.34 −35%
The Timken Company TKR $130.25 $64.85 −50%
The Toro Company TTC $92.37 $69.71 −25%
SFS Group SFSN CHF 131.40 CHF 118.30 −10%
Hangzhou Greatstar Industrial Co 002444 ¥30.51 ¥30.38 +0%

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Frequently asked questions

Is Shareate Tools Ltd (688257) overvalued or undervalued?
As of Aug 19, 2026, our model estimates a fair value of ¥11.87 versus a price of ¥51.11, about −77% upside (overvalued).
What is the fair value of 688257?
Our model-based fair value for Shareate Tools Ltd is ¥11.87 (as of Aug 19, 2026), built from audited fundamentals. The current price: ¥51.11.
What is the quality score of 688257?
Shareate Tools Ltd has a Quality Score of 48/100. 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 Shareate Tools Ltd (688257)?
Shareate Tools Ltd reported trailing-twelve-month revenue of about 3.1B CNY (latest available figure, as of Aug 19, 2026).
What is the net profit margin of 688257?
The net profit margin of Shareate Tools Ltd is about 16.0%, meaning it keeps roughly 16.0% of revenue as net income. Based on the latest reported figures.
Does Shareate Tools Ltd pay a dividend?
Shareate Tools Ltd currently shows a dividend yield of about 0.41% relative to its recent price (as of Aug 19, 2026).
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