MindChamps PreSchool Limited (SGX:CNE) Stock's 29% Dive Might Signal An Opportunity But It Requires Some Scrutiny
MindChamps PreSchool Limited (SGX:CNE) Stock's 29% Dive Might Signal An Opportunity But It Requires Some Scrutiny
The MindChamps PreSchool Limited (SGX:CNE) share price has fared very poorly over the last month, falling by a substantial 29%. To make matters worse, the recent drop has wiped out a year's worth of gains with the share price now back where it started a year ago.
Since its price has dipped substantially, MindChamps PreSchool may be sending bullish signals at the moment with its price-to-earnings (or "P/E") ratio of 7.9x, since almost half of all companies in Singapore have P/E ratios greater than 12x and even P/E's higher than 21x are not unusual. Although, it's not wise to just take the P/E at face value as there may be an explanation why it's limited.
Recent times have been quite advantageous for MindChamps PreSchool as its earnings have been rising very briskly. One possibility is that the P/E is low because investors think this strong earnings growth might actually underperform the broader market in the near future. If that doesn't eventuate, then existing shareholders have reason to be quite optimistic about the future direction of the share price.
We don't have analyst forecasts, but you can see how recent trends are setting up the company for the future by checking out our free report on MindChamps PreSchool's earnings, revenue and cash flow.How Is MindChamps PreSchool's Growth Trending?
MindChamps PreSchool'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 an exceptional 69% gain to the company's bottom line. Pleasingly, EPS has also lifted 62% in aggregate from three years ago, thanks to the last 12 months of growth. So we can start by confirming that the company has done a great job of growing earnings over that time.
Comparing that to the market, which is only predicted to deliver 11% 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 MindChamps PreSchool is trading at a P/E lower than the market. Apparently some shareholders believe the recent performance has exceeded its limits and have been accepting significantly lower selling prices.
The Key Takeaway
MindChamps PreSchool's recently weak share price has pulled its P/E below most other companies. Typically, we'd caution against reading too much into price-to-earnings ratios when settling on investment decisions, though it can reveal plenty about what other market participants think about the company.
We've established that MindChamps PreSchool 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. At least price risks look to be very low if recent medium-term earnings trends continue, but investors seem to think future earnings could see a lot of volatility.
There are also other vital risk factors to consider and we've discovered 4 warning signs for MindChamps PreSchool (1 shouldn't be ignored!) that you should be aware of before investing here.
Of course, you might find a fantastic investment by looking at a few good candidates. So take a peek at this free list of companies with a strong growth track record, trading on a low P/E.
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.
上個月,MindChamps學前教育有限公司(新加坡證券交易所股票代碼:CNE)的股價表現非常糟糕,大幅下跌了29%。更糟糕的是,最近的下跌使一年的漲幅化爲烏有,股價現在又回到了一年前的起點。
由於價格大幅下跌,MindChamps Prechool目前可能以7.9倍的市盈率(或 “市盈率”)發出看漲信號,因爲新加坡幾乎有一半公司的市盈率超過12倍,甚至市盈率高於21倍也並不罕見。但是,僅按面值計算市盈率是不明智的,因爲可以解釋爲什麼市盈率有限。
最近對MindChamps幼兒園來說非常有利,因爲其收入一直在快速增長。一種可能性是市盈率很低,因爲投資者認爲這種強勁的收益增長在不久的將來實際上可能低於整個市場。如果最終沒有發生這種情況,那麼現有股東就有理由對股價的未來走向非常樂觀。
我們沒有分析師的預測,但您可以查看我們關於MindChamps Preshool收益、收入和現金流的免費報告,了解最近的趨勢如何爲公司未來做好準備。MindChamps 幼兒園的增長趨勢如何?
對於一家預計增長有限、重要的是表現不如市場的公司來說,MindChamps PreSchamps PreSchamps 的市盈率是典型的。
回顧過去,去年的公司利潤實現了69%的驚人增長。令人高興的是,由於過去12個月的增長,每股收益也比三年前增長了62%。因此,我們可以首先確認該公司在此期間在增加收益方面做得很好。
相比之下,市場預計在未來12個月內僅實現11%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,我們發現奇怪的是,MindChamps PreSchamps的市盈率低於市場。顯然,一些股東認爲最近的表現已經超過了極限,並且一直在接受大幅降低的銷售價格。
關鍵要點
MindChamps Preschool最近股價疲軟,使其市盈率低於大多數其他公司。通常,在做出投資決策時,我們謹慎行事,不要過多地解讀市盈率,儘管這可以充分揭示其他市場參與者對公司的看法。
我們已經確定,MindChamps PreSchamps PreSchamps 目前的市盈率遠低於預期,因爲其最近的三年增長高於更廣泛的市場預期。當我們看到強勁的收益且增長快於市場時,我們認爲潛在的風險可能會給市盈率帶來巨大壓力。如果最近的中期收益趨勢持續下去,至少價格風險看起來會非常低,但投資者似乎認爲未來的收益可能會出現很大的波動。
還有其他重要的風險因素需要考慮,我們已經發現了MindChamps幼兒園的4個警告信號(其中一個不容忽視!)在這裏投資之前,您應該注意這一點。
當然,通過尋找一些優秀的候選人,你可能會找到一筆不錯的投資。因此,來看看這份增長記錄強勁、市盈率低的公司的免費名單吧。
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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。
譯文內容由第三人軟體翻譯。
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