China CBM Group Company Limited (HKG:8270) shareholders that were waiting for something to happen have been dealt a blow with a 29% share price drop in the last month. Looking at the bigger picture, even after this poor month the stock is up 89% in the last year.
Although its price has dipped substantially, China CBM Group's price-to-earnings (or "P/E") ratio of 1.7x might still make it look like a strong buy right now compared to the market in Hong Kong, where around half of the companies have P/E ratios above 10x and even P/E's above 21x are quite common. Although, it's not wise to just take the P/E at face value as there may be an explanation why it's so limited.
For example, consider that China CBM Group's financial performance has been pretty ordinary lately as earnings growth is non-existent. It might be that many expect the uninspiring earnings performance to worsen, which has repressed the P/E. If not, then existing shareholders may be feeling optimistic about the future direction of the share price.
See our latest analysis for China CBM Group
SEHK:8270 Price to Earnings Ratio vs Industry June 7th 2023
Want the full picture on earnings, revenue and cash flow for the company? Then our free report on China CBM Group will help you shine a light on its historical performance.
What Are Growth Metrics Telling Us About The Low P/E?
There's an inherent assumption that a company should far underperform the market for P/E ratios like China CBM Group's to be considered reasonable.
If we review the last year of earnings, the company posted a result that saw barely any deviation from a year ago. Likewise, not much has changed from three years ago as earnings have been stuck during that whole time. So it seems apparent to us that the company has struggled to grow earnings meaningfully over that time.
Weighing that recent medium-term earnings trajectory against the broader market's one-year forecast for expansion of 25% shows it's noticeably less attractive on an annualised basis.
In light of this, it's understandable that China CBM Group's P/E sits below the majority of other companies. It seems most investors are expecting to see the recent limited growth rates continue into the future and are only willing to pay a reduced amount for the stock.
What We Can Learn From China CBM Group's P/E?
Shares in China CBM Group have plummeted and its P/E is now low enough to touch the ground. Using the price-to-earnings ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects.
We've established that China CBM Group maintains its low P/E on the weakness of its recent three-year growth being lower than the wider market forecast, as expected. Right now shareholders are accepting the low P/E as they concede future earnings probably won't provide any pleasant surprises. Unless the recent medium-term conditions improve, they will continue to form a barrier for the share price around these levels.
We don't want to rain on the parade too much, but we did also find 4 warning signs for China CBM Group that you need to be mindful of.
If P/E ratios interest you, you may wish to see this free collection of other companies with strong earnings growth and low P/E ratios.
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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.
中國煤層氣集團有限公司 (HKG: 8270) 上個月股價下跌了29%,這給等待事情發生的股東帶來了打擊。從大局來看,即使在經歷了這個糟糕的月份之後,該股在去年仍上漲了89%。
儘管其價格大幅下跌,但與香港市場相比,中國煤層氣集團1.7倍的市盈率(或 “市盈率”)可能仍使其看起來像是強勢買入。在香港,大約一半的公司的市盈率超過10倍,甚至市盈率超過21倍也很常見。但是,僅按面值計算市盈率是不明智的,因爲可以解釋爲甚麼市盈率如此有限。
例如,假設中國煤層氣集團最近的財務表現相當普通,因爲收益沒有增長。可能是許多人預計平淡無奇的收益表現將惡化,這抑制了市盈率。否則,現有股東可能會對股價的未來走向感到樂觀。
查看我們對中國煤層氣集團的最新分析
SEHK: 8270 市盈率與行業比率 2023 年 6 月 7 日
想全面瞭解公司的收益、收入和現金流嗎?然後我們的免費的中國煤層氣集團的報告將幫助您瞭解其歷史表現。
關於低市盈率,增長指標告訴我們甚麼?
人們固有的假設是,如果像中國煤層氣集團這樣的市盈率被認爲是合理的,那麼一家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,該公司公佈的業績與一年前幾乎沒有任何偏差。同樣,與三年前相比,變化不大,因爲在這段時間裏,收益一直停滯不前。因此,在我們看來,很明顯,在此期間,該公司一直在努力實現有意義的收益增長。
權衡最近的中期收益軌跡與整個市場一年內對25%的擴張預測之間的權衡表明,按年計算,其吸引力明顯降低。
有鑑於此,中國煤層氣集團的市盈率低於大多數其他公司是可以理解的。看來大多數投資者都預計近期有限的增長率將持續到未來,他們只願意爲該股支付較少的金額。
我們可以從中國煤層氣集團的市盈率中學到甚麼?
中國煤層氣集團的股價暴跌,其市盈率現在已經足夠低了,足以觸及地面。僅使用市盈率來確定是否應該出售股票是不明智的,但它可以作爲公司未來前景的實用指南。
我們已經確定,正如預期的那樣,中國煤層氣集團維持其低市盈率,原因是其最近三年的增長疲軟,低於更廣泛的市場預期。目前,股東們正在接受低市盈率,因爲他們承認未來的收益可能不會帶來任何驚喜。除非最近的中期條件有所改善,否則它們將繼續構成股價在這些水平附近的障礙。
我們不想在遊行隊伍中下太多雨,但我們也發現了 中國煤層氣集團的4個警告信號 這是你需要注意的。
如果你對市盈率感興趣,你可能希望看到這個 免費的 彙集了其他盈利增長強勁且市盈率低的公司。
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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,也沒有考慮您的目標或財務狀況。我們的目標是爲您提供由基本面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公司公告或定性材料。簡而言之,華爾街在上述任何股票中都沒有頭寸。