When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") above 17x, you may consider Vishay Intertechnology, Inc. (NYSE:VSH) as an attractive investment with its 9.4x P/E ratio. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the reduced P/E.
Vishay Intertechnology has been struggling lately as its earnings have declined faster than most other companies. The P/E is probably low because investors think this poor earnings performance isn't going to improve at all. You'd much rather the company wasn't bleeding earnings if you still believe in the business. Or at the very least, you'd be hoping the earnings slide doesn't get any worse if your plan is to pick up some stock while it's out of favour.
NYSE:VSH Price to Earnings Ratio vs Industry April 26th 2024
If you'd like to see what analysts are forecasting going forward, you should check out our free report on Vishay Intertechnology.
Does Growth Match The Low P/E?
Vishay Intertechnology's P/E ratio would be typical for a company that's only expected to deliver limited growth, and importantly, perform worse than the market.
Retrospectively, the last year delivered a frustrating 22% decrease to the company's bottom line. Even so, admirably EPS has lifted 177% in aggregate from three years ago, notwithstanding the last 12 months. Accordingly, while they would have preferred to keep the run going, shareholders would probably welcome the medium-term rates of earnings growth.
Shifting to the future, estimates from the five analysts covering the company suggest earnings growth is heading into negative territory, declining 6.5% per annum over the next three years. With the market predicted to deliver 11% growth each year, that's a disappointing outcome.
With this information, we are not surprised that Vishay Intertechnology is trading at a P/E lower than the market. Nonetheless, there's no guarantee the P/E has reached a floor yet with earnings going in reverse. Even just maintaining these prices could be difficult to achieve as the weak outlook is weighing down the shares.
What We Can Learn From Vishay Intertechnology's P/E?
We'd say the price-to-earnings ratio's power isn't primarily as a valuation instrument but rather to gauge current investor sentiment and future expectations.
As we suspected, our examination of Vishay Intertechnology's analyst forecasts revealed that its outlook for shrinking earnings is contributing to its low P/E. At this stage investors feel the potential for an improvement in earnings isn't great enough to justify a higher P/E ratio. It's hard to see the share price rising strongly in the near future under these circumstances.
We don't want to rain on the parade too much, but we did also find 2 warning signs for Vishay Intertechnology (1 is a bit concerning!) that you need to be mindful of.
Of course, you might also be able to find a better stock than Vishay Intertechnology. So you may wish to see this free collection of other companies that have reasonable P/E ratios and have grown earnings strongly.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
當將近一半的美國公司的市盈率(或 “市盈率”)高於17倍時,您可以將Vishay Intertechnology, Inc.(紐約證券交易所代碼:VSH)的市盈率(或 “市盈率”)視爲具有9.4倍市盈率的有吸引力的投資。儘管如此,我們需要更深入地挖掘以確定降低市盈率是否有合理的基礎。
由於其收益的下降速度快於大多數其他公司,Vishay Intertechnology最近一直處於困境。市盈率可能很低,因爲投資者認爲這種糟糕的收益表現根本不會改善。如果你仍然相信公司的業務,你寧願公司不流失收益。或者至少,如果你的計劃是在失寵的時候買入一些股票,你希望收益下滑不會變得更糟。
紐約證券交易所:VSH 對比行業的市盈率 2024 年 4 月 26 日
如果你想了解分析師對未來的預測,你應該查看我們關於Vishay Intertechnology的免費報告。
增長與低市盈率相匹配嗎?
Vishay Intertechnology的市盈率對於一家預計增長有限,而且重要的是表現不如市場表現的公司來說是典型的。
回顧過去,去年公司的利潤下降了22%,令人沮喪。即便如此,儘管過去12個月,但每股收益總額仍比三年前增長了177%,令人欽佩。因此,儘管股東們本來希望保持盈利,但他們可能會對中期收益增長率表示歡迎。
展望未來,報道該公司的五位分析師的估計表明,收益增長將進入負值區間,未來三年每年下降6.5%。預計市場每年將實現11%的增長,這是一個令人失望的結果。
有了這些信息,Vishay Intertechnology的交易市盈率低於市場也就不足爲奇了。儘管如此,還不能保證市盈率已達到最低水平,收益反轉。由於疲軟的前景壓低了股價,即使僅僅維持這些價格也可能難以實現。
我們可以從Vishay Intertechnology的市盈率中學到什麼?
我們可以說,市盈率的力量主要不是作爲估值工具,而是衡量當前投資者情緒和未來預期。
正如我們所懷疑的那樣,我們對Vishay Intertechnology分析師預測的審查顯示,其收益萎縮的前景是其低市盈率的原因。在現階段,投資者認爲,收益改善的可能性不足以證明更高的市盈率是合理的。在這種情況下,很難看到股價在不久的將來強勁上漲。
我們不想在遊行隊伍中下太多雨,但我們還發現了 Vishay Intertechnology 的 2 個警告標誌(1 個有點令人擔憂!)你需要注意的。
當然,你也可以找到比Vishay Intertechnology更好的股票。因此,你不妨免費查看其他市盈率合理且收益強勁增長的公司。
對這篇文章有反饋嗎?對內容感到擔憂嗎?請直接聯繫我們。或者,也可以發送電子郵件至編輯團隊 (at) simplywallst.com。
Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。