Yanlord Land Group Limited's (SGX:Z25) Subdued P/E Might Signal An Opportunity
Yanlord Land Group Limited's (SGX:Z25) Subdued P/E Might Signal An Opportunity
With a price-to-earnings (or "P/E") ratio of 3.9x Yanlord Land Group Limited (SGX:Z25) may be sending very bullish signals at the moment, given that almost half of all companies in Singapore have P/E ratios greater than 13x and even P/E's higher than 23x are not unusual. However, the P/E might be quite low for a reason and it requires further investigation to determine if it's justified.
With earnings that are retreating more than the market's of late, Yanlord Land Group has been very sluggish. The P/E is probably low because investors think this poor earnings performance isn't going to improve at all. If you still like the company, you'd want its earnings trajectory to turn around before making any decisions. If not, then existing shareholders will probably struggle to get excited about the future direction of the share price.
If you'd like to see what analysts are forecasting going forward, you should check out our free report on Yanlord Land Group.How Is Yanlord Land Group's Growth Trending?
There's an inherent assumption that a company should far underperform the market for P/E ratios like Yanlord Land Group's to be considered reasonable.
If we review the last year of earnings, dishearteningly the company's profits fell to the tune of 61%. The last three years don't look nice either as the company has shrunk EPS by 53% in aggregate. So unfortunately, we have to acknowledge that the company has not done a great job of growing earnings over that time.
Looking ahead now, EPS is anticipated to climb by 4.3% each year during the coming three years according to the two analysts following the company. That's shaping up to be similar to the 6.3% per annum growth forecast for the broader market.
In light of this, it's peculiar that Yanlord Land Group's P/E sits below the majority of other companies. Apparently some shareholders are doubtful of the forecasts and have been accepting lower selling prices.
The Bottom Line On Yanlord Land Group's P/E
While the price-to-earnings ratio shouldn't be the defining factor in whether you buy a stock or not, it's quite a capable barometer of earnings expectations.
Our examination of Yanlord Land Group's analyst forecasts revealed that its market-matching earnings outlook isn't contributing to its P/E as much as we would have predicted. There could be some unobserved threats to earnings preventing the P/E ratio from matching the outlook. It appears some are indeed anticipating earnings instability, because these conditions should normally provide more support to the share price.
Plus, you should also learn about these 2 warning signs we've spotted with Yanlord Land Group.
If these risks are making you reconsider your opinion on Yanlord Land Group, explore our interactive list of high quality stocks to get an idea of what else is out there.
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.
仁恒置地集團有限公司(新加坡證券交易所股票代碼:Z25)的市盈率(或 “市盈率”)爲3.9倍,目前可能會發出非常看漲的信號,因爲新加坡幾乎有一半公司的市盈率大於13倍,甚至市盈率高於23倍也並不罕見。但是,市盈率可能很低是有原因的,需要進一步調查以確定其是否合理。
由於收益的回落幅度超過了近期的市場,仁恒置地集團一直表現不佳。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。如果你仍然喜歡這家公司,那麼在做出任何決定之前,你會希望其盈利軌跡得到扭轉。如果不是,那麼現有股東可能很難對股價的未來走向感到興奮。
如果你想了解分析師對未來的預測,你應該查看我們關於仁恒置地集團的免費報告。仁恒置地集團的增長趨勢如何?
人們固有的假設是,如果像仁恒置地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61%。過去三年看起來也不太好,因爲該公司的每股收益總共縮水了53%。因此,不幸的是,我們必須承認,在這段時間內,該公司在增加收益方面做得不好。
關注該公司的兩位分析師表示,展望未來,預計未來三年每股收益將每年增長4.3%。這將與整個市場6.3%的年增長預測相似。
有鑑於此,仁恒置地集團的市盈率低於其他大多數公司是很奇怪的。顯然,一些股東對預測持懷疑態度,並一直在接受較低的銷售價格。
仁恒置地集團市盈率的底線
雖然市盈率不應該是決定你是否買入股票的決定性因素,但它是衡量收益預期的有力晴雨表。
我們對仁恒置地集團分析師預測的研究表明,其與市場相匹配的收益前景對市盈率的貢獻不如我們預期的那麼大。可能存在一些未觀察到的收益威脅,使市盈率與前景不符。看來有些人確實在預測收益不穩定,因爲這些條件通常應該爲股價提供更多支撐。
另外,您還應該了解我們在仁恒置地集團發現的這兩個警告信號。
如果這些風險讓你重新考慮你對仁恒置地集團的看法,請瀏覽我們的高質量股票互動清單,了解還有什麼。
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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