Those holding Pan Hong Holdings Group Limited (SGX:P36) shares would be relieved that the share price has rebounded 28% in the last thirty days, but it needs to keep going to repair the recent damage it has caused to investor portfolios. Unfortunately, the gains of the last month did little to right the losses of the last year with the stock still down 32% over that time.
Even after such a large jump in price, given close to half the companies in Singapore have price-to-earnings ratios (or "P/E's") above 11x, you may still consider Pan Hong Holdings Group as a highly attractive investment with its 4.9x P/E ratio. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the highly reduced P/E.
As an illustration, earnings have deteriorated at Pan Hong Holdings Group over the last year, which is not ideal at all. It might be that many expect the disappointing earnings performance to continue or accelerate, which has repressed the P/E. If you like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's out of favour.
See our latest analysis for Pan Hong Holdings Group
SGX:P36 Price Based on Past Earnings September 11th 2022 Want the full picture on earnings, revenue and cash flow for the company? Then our
free report on Pan Hong Holdings Group will help you shine a light on its historical performance.
Is There Any Growth For Pan Hong Holdings Group?
There's an inherent assumption that a company should far underperform the market for P/E ratios like Pan Hong Holdings Group's to be considered reasonable.
If we review the last year of earnings, dishearteningly the company's profits fell to the tune of 75%. This has soured the latest three-year period, which nevertheless managed to deliver a decent 27% overall rise in EPS. Accordingly, while they would have preferred to keep the run going, shareholders would be roughly satisfied with the medium-term rates of earnings growth.
Comparing that to the market, which is only predicted to deliver 4.1% growth in the next 12 months, the company's momentum is stronger based on recent medium-term annualised earnings results.
With this information, we find it odd that Pan Hong Holdings Group is trading at a P/E lower than the market. It looks like most investors are not convinced the company can maintain its recent growth rates.
The Final Word
Even after such a strong price move, Pan Hong Holdings Group's P/E still trails the rest of the market significantly. It's argued the price-to-earnings ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator.
We've established that Pan Hong Holdings Group currently trades on a much lower than expected P/E since its recent three-year growth is higher than the wider market forecast. When we see strong earnings with faster-than-market growth, we assume potential risks are what might be placing significant pressure on the P/E ratio. It appears many are indeed anticipating earnings instability, because the persistence of these recent medium-term conditions would normally provide a boost to the share price.
There are also other vital risk factors to consider and we've discovered 3 warning signs for Pan Hong Holdings Group (1 makes us a bit uncomfortable!) that you should be aware of before investing here.
You might be able to find a better investment than Pan Hong Holdings Group. If you want a selection of possible candidates, check out this free list of interesting companies that trade on a P/E below 20x (but have proven they can grow earnings).
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
那些持有泛宏控股集團有限公司(SGX: P36)股票的人會鬆一口氣,因爲股價在過去三十天中反彈了28%,但它需要繼續修復最近對投資者投資組合造成的損失。不幸的是,上個月的漲幅幾乎沒有彌補去年的虧損,在此期間,該股仍下跌了32%。
即使在價格大幅上漲之後,鑑於新加坡將近一半的公司的市盈率(或 “市盈率”)高於11倍,您仍然可以將泛宏控股集團視爲具有4.9倍市盈率的極具吸引力的投資。儘管如此,我們需要更深入地挖掘,以確定市盈率大幅下降是否有合理的基礎。
舉例來說,泛宏控股集團的收益在過去一年中有所惡化,這根本不理想。許多人可能預計,令人失望的盈利表現將持續或加速,這抑制了市盈率。如果你喜歡該公司,你會希望情況並非如此,這樣你就有可能在股票失寵的時候買入一些股票。
查看我們對泛宏控股集團的最新分析
新加坡證券交易所:P36 價格基於過去2022年9月11日的收益想全面了解公司的收益、收入和現金流嗎?那麼我們關於泛宏控股集團的免費報告將幫助您了解其歷史表現。
泛宏控股集團有增長嗎?
人們固有的假設是,如果像泛虹控股集團這樣的市盈率才算合理,公司的表現應該遠遠低於市場。
如果我們回顧一下去年的收益,令人沮喪的是,該公司的利潤下降了75%。這使最近的三年期惡化,儘管如此,每股收益總體增長了27%。因此,儘管股東本來希望保持盈利,但他們會對中期收益增長率大致滿意。
相比之下,市場預計在未來12個月內僅實現4.1%的增長,根據最近的中期年化收益業績,該公司的勢頭更強勁。
有了這些信息,我們感到奇怪的是,泛宏控股集團的市盈率低於市場。看來大多數投資者不相信該公司能夠維持其最近的增長率。
最後一句話
即使在價格走勢如此強勁之後,泛宏控股集團的市盈率仍大大落後於其他市場。有人認爲,市盈率在某些行業中是衡量價值的次要指標,但它可能是一個有力的商業信心指標。
我們已經確定,泛宏控股集團目前的市盈率遠低於預期,因爲其最近三年的增長高於更廣泛的市場預期。當我們看到強勁的收益和快於市場的增長速度時,我們假設潛在風險可能會給市盈率帶來巨大壓力。看來許多人確實在預期收益不穩定,因爲近期這些中期狀況的持續下去通常會提振股價。
還有其他重要的風險因素需要考慮,我們已經發現了泛宏控股集團的3個警告信號(1個讓我們有點不舒服!)在這裏投資之前,您應該注意這一點。
你也許能找到比泛宏控股集團更好的投資。如果你想選擇可能的候選人,可以免費查看這份有趣的公司名單,這些公司的市盈率低於20倍(但已經證明它們可以增加收益)。
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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。