U-Haul Holding Company's (NYSE:UHAL) Price Is Out Of Tune With Earnings
U-Haul Holding Company's (NYSE:UHAL) Price Is Out Of Tune With Earnings
There wouldn't be many who think U-Haul Holding Company's (NYSE:UHAL) price-to-earnings (or "P/E") ratio of 17.2x is worth a mention when the median P/E in the United States is similar at about 17x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/E.
With earnings that are retreating more than the market's of late, U-Haul Holding has been very sluggish. One possibility is that the P/E is moderate because investors think the company's earnings trend will eventually fall in line with most others in the market. If you still like the company, you'd want its earnings trajectory to turn around before making any decisions. If not, then existing shareholders may be a little nervous about the viability of the share price.
See our latest analysis for U-Haul Holding
Keen to find out how analysts think U-Haul Holding's future stacks up against the industry? In that case, our free report is a great place to start.Is There Some Growth For U-Haul Holding?
U-Haul Holding's P/E ratio would be typical for a company that's only expected to deliver moderate growth, and importantly, perform in line with the market.
If we review the last year of earnings, dishearteningly the company's profits fell to the tune of 28%. Still, the latest three year period has seen an excellent 51% overall rise in EPS, in spite of its unsatisfying short-term performance. So we can start by confirming that the company has generally done a very good job of growing earnings over that time, even though it had some hiccups along the way.
Turning to the outlook, the next year should generate growth of 8.1% as estimated by the sole analyst watching the company. With the market predicted to deliver 10% growth , the company is positioned for a weaker earnings result.
In light of this, it's curious that U-Haul Holding's P/E sits in line with the majority of other companies. It seems most investors are ignoring the fairly limited growth expectations and are willing to pay up for exposure to the stock. These shareholders may be setting themselves up for future disappointment if the P/E falls to levels more in line with the growth outlook.
The Bottom Line On U-Haul Holding's P/E
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 U-Haul Holding currently trades on a higher than expected P/E since its forecast growth is lower than the wider market. When we see a weak earnings outlook with slower than market growth, we suspect the share price is at risk of declining, sending the moderate P/E lower. Unless these conditions improve, it's challenging to accept these prices as being reasonable.
Don't forget that there may be other risks. For instance, we've identified 1 warning sign for U-Haul Holding that you should be aware of.
If you're unsure about the strength of U-Haul Holding's business, why not explore our interactive list of stocks with solid business fundamentals for some other companies you may have missed.
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.
當美國的市盈率中位數相似,約爲17倍時,沒有多少人認爲U-Haul Holding Company(紐約證券交易所代碼:UHAL)的17.2倍市盈率(或 “市盈率”)值得一提。但是,如果市盈率沒有合理的基礎,投資者可能會忽視明顯的機會或潛在的挫折。
由於近期收益回落幅度超過市場,U-Haul Holding一直表現非常疲軟。一種可能性是,市盈率適中,因爲投資者認爲該公司的收益趨勢最終將與市場上大多數其他公司的收益趨勢持平。如果你仍然喜歡這家公司,你希望在做出任何決定之前扭轉其盈利軌跡。如果不是,那麼現有股東可能會對股價的可行性感到有些緊張。
查看我們對U-Haul Holding的最新分析
想了解分析師如何看待U-Haul Holding的未來與行業背道而馳嗎?在這種情況下,我們的免費報告是一個不錯的起點。U-Haul Holding有增長嗎?
U-Haul Holding的市盈率對於一家預計只會實現溫和增長且重要的是表現與市場一致的公司來說是典型的。
如果我們回顧一下去年的收益,令人沮喪的是,該公司的利潤下降至28%。儘管如此,儘管短期表現並不令人滿意,但在過去三年中,每股收益總體增長了51%。因此,我們可以首先證實,儘管在此過程中遇到了一些問題,但該公司在增加收益方面總體上做得很好。
談到前景,唯一關注該公司的分析師估計,明年將實現8.1%的增長。預計市場將實現10%的增長,該公司的盈利業績有望疲軟。
有鑑於此,奇怪的是,U-Haul Holding的市盈率與大多數其他公司持平。看來大多數投資者無視相當有限的增長預期,他們願意爲股票敞口付出代價。如果市盈率降至更符合增長前景的水平,這些股東可能會爲未來的失望做好準備。
U-Haul Holding市盈率的底線
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,U-Haul Holding目前的市盈率高於預期,因爲其預測增長低於整個市場。當我們看到收益前景疲軟,增長低於市場增長時,我們懷疑股價有下跌的風險,從而導致溫和的市盈率下降。除非這些條件有所改善,否則很難接受這些價格是合理的。
別忘了可能還有其他風險。例如,我們已經爲U-Haul Holding確定了1個警告信號,你應該注意。
如果你不確定U-Haul Holding的業務實力,爲什麼不瀏覽我們爲你可能錯過的其他公司提供的具有穩健業務基礎的互動股票清單。
對這篇文章有反饋嗎?對內容感到擔憂?直接聯繫我們。 或者,給編輯團隊 (at) simplywallst.com 發送電子郵件。
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。
譯文內容由第三人軟體翻譯。
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