Investors Don't See Light At End Of China Shenshan Orchard Holdings Co. Ltd.'s (SGX:BKV) Tunnel And Push Stock Down 48%
Investors Don't See Light At End Of China Shenshan Orchard Holdings Co. Ltd.'s (SGX:BKV) Tunnel And Push Stock Down 48%
China Shenshan Orchard Holdings Co. Ltd. (SGX:BKV) shareholders won't be pleased to see that the share price has had a very rough month, dropping 48% and undoing the prior period's positive performance. For any long-term shareholders, the last month ends a year to forget by locking in a 63% share price decline.
In spite of the heavy fall in price, China Shenshan Orchard Holdings may still be sending very bullish signals at the moment with its price-to-earnings (or "P/E") ratio of 2.8x, 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. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the highly reduced P/E.
For example, consider that China Shenshan Orchard Holdings' financial performance has been poor lately as its earnings have been in decline. One possibility is that the P/E is low because investors think the company won't do enough to avoid underperforming the broader market in the near future. 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.
Although there are no analyst estimates available for China Shenshan Orchard Holdings, take a look at this free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.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 Shenshan Orchard Holdings' to be considered reasonable.
If we review the last year of earnings, dishearteningly the company's profits fell to the tune of 58%. This has erased any of its gains during the last three years, with practically no change in EPS being achieved in total. So it appears to us that the company has had a mixed result in terms of growing earnings over that time.
Comparing that to the market, which is predicted to deliver 11% growth in the next 12 months, the company's momentum is weaker based on recent medium-term annualised earnings results.
In light of this, it's understandable that China Shenshan Orchard Holdings' P/E sits below the majority of other companies. Apparently many shareholders weren't comfortable holding on to something they believe will continue to trail the bourse.
The Bottom Line On China Shenshan Orchard Holdings' P/E
Shares in China Shenshan Orchard Holdings have plummeted and its P/E is now low enough to touch the ground. 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 China Shenshan Orchard Holdings 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.
It's always necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with China Shenshan Orchard Holdings (at least 2 which are a bit unpleasant), and understanding these should be part of your investment process.
Of course, you might also be able to find a better stock than China Shenshan Orchard Holdings. So you may wish to see this free collection of other companies that have reasonable P/E ratios and have grown earnings strongly.
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.
中國神山果園控股有限公司Ltd.(新加坡證券交易所股票代碼:BKV)股東不會高興地看到股價經歷了一個非常艱難的月份,下跌了48%,抵消了前一時期的積極表現。對於任何長期股東來說,最後一個月的股價跌幅爲63%,從而結束了令人難忘的一年。
儘管價格大幅下跌,但中國神山果園控股目前可能仍在發出非常看漲的信號,其市盈率(或 “市盈率”)爲2.8倍,因爲新加坡幾乎有一半公司的市盈率大於12倍,甚至市盈率高於21倍也並不罕見。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。
例如,假設中國神山果園控股最近由於收益下降而財務表現不佳。一種可能性是市盈率很低,因爲投資者認爲該公司在避免在不久的將來表現不佳方面做得還不夠。如果你喜歡這家公司,你希望情況並非如此,這樣你就有可能在它失寵的時候買入一些股票。
儘管沒有分析師對中國神山果園控股的估計,但看看這個免費的數據豐富的可視化工具,看看該公司的收益、收入和現金流是如何積累的。關於低市盈率,增長指標告訴我們什麼?
人們固有的假設是,如果像中國神山果園控股公司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58%。這抹去了其在過去三年中的任何收益,總體每股收益幾乎沒有變化。因此,在我們看來,該公司的收益增長好壞參半。
相比之下,市場預計將在未來12個月內實現11%的增長,但根據最近的中期年化收益業績,該公司的勢頭較弱。
有鑑於此,中國神山果園控股的市盈率低於其他大多數公司是可以理解的。顯然,許多股東不願意持有他們認爲將繼續落後於交易所的股票。
中國神山果園控股市盈率的底線
中國神山果園控股的股價暴跌,其市盈率現在已經足夠低,足以觸底。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,中國神山果園控股維持低市盈率,原因是其最近三年的增長疲軟,低於更廣泛的市場預測,正如預期的那樣。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。除非最近的中期狀況有所改善,否則它們將繼續構成股價在這些水平附近的障礙。
始終有必要考慮永遠存在的投資風險幽靈。我們已經向中國神山果園控股公司發現了3個警告信號(至少有2個有點不愉快),理解這些信號應該是你投資過程的一部分。
當然,你也可以找到比中國神山果園控股更好的股票。因此,你不妨免費查看其他市盈率合理且收益強勁增長的公司。
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。
風險及免責聲明
- 分享到weixin
- 分享到qq
- 分享到facebook
- 分享到twitter
- 分享到微博
- 粘贴板
使用瀏覽器的分享功能,分享給你的好友吧