China Petroleum & Chemical Corporation (600028.SS) stock analysis

In our weekly check, China Petroleum & Chemical Corporation is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 6, red flags: 7.

About China Petroleum & Chemical Corporation

China Petroleum & Chemical Corporation is an Energy company (Oil & Gas Integrated) based in China, listed on SHH as 600028.SS.

What our checks show for 600028.SS

Red flags

• Operating profit does not cover the interest bill (0.4x): interest is paid from cash or new debt.
• The net margin fell by 1.4 points over 5 years, to 1.2%: the company keeps less of each sale as profit.
• The gross margin fell by 16.5 points, to 7.6%: costs are rising faster than prices.
• Revenue fell 8.4% a year over the last 3 years.
• The net margin is only 1.2%: little room if costs rise.
• The dividend takes 355% of profit: little cushion if profit falls.
• The stock has fallen as much as 80% from a peak. Would you have held through that?

Warning signs

• Analysts expect only about 4.7% a year of growth in revenue.
• Earnings per share fell 22.1% a year over the last 3 years.
• Net profit fell 22% a year over the last 3 years.
• Free cash flow is only 1.7% of revenue.
• The stock is still below its previous peak.
• Return on capital (ROCE) is only 6%.

Strengths

• Operating cash flow is 5.52x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 20.4% a year over the next years.
• A large company: market value $95.92 billion.
• Beta 0.7: the stock usually moves less than the market.
• Actively traded: about 243 million shares a day.
• Pay in shares is only 0% of free cash flow.

Similar companies

XOM · OIL.NS · CVX · SHEL · 0857.HK · ONGC.NS

Questions

What grade does China Petroleum & Chemical Corporation (600028.SS) have?

In our weekly check, China Petroleum & Chemical Corporation is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 6, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 600028.SS stock?

This week's biggest flags for China Petroleum & Chemical Corporation: Weak interest cover, Margins falling, Gross margin falling. In total 13 of 25 checks show a warning or a red flag.

What does China Petroleum & Chemical Corporation do?

China Petroleum & Chemical Corporation is an Energy company (Oil & Gas Integrated) based in China, listed on SHH as 600028.SS.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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