China Shenhua Energy

On valuation, the picture is expensive. The owner-earnings multiple stands at 33.6×; owner earnings: the cash an owner could take out each year. The implied growth embedded in that price is around 13% a year, against analyst forecasts of 2%. The market is pricing in far more than analysts expect: heroic expectations.

Growth is tepid; the safety picture is sturdy. The company scores 12/20 on our value-creation score: creating some value.

Flags to be aware of: Some accounting patterns deserve a closer look. As always: this describes the company's numbers; it is not a recommendation.