Market Still Lacking Some Conviction On Assurant, Inc. (NYSE:AIZ)
Market Still Lacking Some Conviction On Assurant, Inc. (NYSE:AIZ)
When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") above 17x, you may consider Assurant, Inc. (NYSE:AIZ) as an attractive investment with its 14.1x P/E ratio. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the reduced P/E.
With its earnings growth in positive territory compared to the declining earnings of most other companies, Assurant has been doing quite well of late. One possibility is that the P/E is low because investors think the company's earnings are going to fall away like everyone else's soon. 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.
Want the full picture on analyst estimates for the company? Then our free report on Assurant will help you uncover what's on the horizon.How Is Assurant's Growth Trending?
In order to justify its P/E ratio, Assurant would need to produce sluggish growth that's trailing the market.
If we review the last year of earnings growth, the company posted a terrific increase of 136%. The latest three year period has also seen an excellent 48% overall rise in EPS, aided by its short-term performance. Accordingly, shareholders would have probably welcomed those medium-term rates of earnings growth.
Looking ahead now, EPS is anticipated to climb by 20% each year during the coming three years according to the five analysts following the company. With the market only predicted to deliver 10% per year, the company is positioned for a stronger earnings result.
With this information, we find it odd that Assurant is trading at a P/E lower than the market. It looks like most investors are not convinced at all that the company can achieve future growth expectations.
The Key Takeaway
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.
We've established that Assurant currently trades on a much lower than expected P/E since its forecast growth is higher than the wider market. When we see a strong earnings outlook with faster-than-market growth, we assume potential risks are what might be placing significant pressure on the P/E ratio. It appears many are indeed anticipating earnings instability, because these conditions should normally provide a boost to the share price.
Many other vital risk factors can be found on the company's balance sheet. Our free balance sheet analysis for Assurant with six simple checks will allow you to discover any risks that could be an issue.
If you're unsure about the strength of Assurant'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.
當將近一半的美國公司的市盈率(或 “市盈率”)高於17倍時,您可以將Assurant, Inc.(紐約證券交易所代碼:AIZ)的市盈率爲14.1倍視爲具有吸引力的投資。儘管如此,我們需要更深入地挖掘以確定降低市盈率是否有合理的基礎。
與大多數其他公司的收益下降相比,Assurant的收益增長處於正值區間,最近表現良好。一種可能性是市盈率很低,因爲投資者認爲該公司的收益將像其他所有人一樣很快下降。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。
想全面了解分析師對公司的估計嗎?然後,我們關於Assurant的免費報告將幫助您發現即將發生的事情。Assurant 的增長趨勢如何?
爲了證明其市盈率是合理的,Assurant需要實現落後於市場的緩慢增長。
如果我們回顧一下去年的收益增長,該公司公佈了136%的驚人增長。在最近的三年中,受短期表現的推動,每股收益總體增長了48%。因此,股東們可能會對這些中期收益增長率表示歡迎。
根據關注該公司的五位分析師的說法,展望未來,預計未來三年每股收益將每年增長20%。由於預計市場每年僅增長10%,該公司有望實現更強勁的盈利業績。
有了這些信息,我們發現Assurant的市盈率低於市場的價格很奇怪。看來大多數投資者根本不相信公司能夠實現未來的增長預期。
關鍵要點
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。
我們已經確定,Assurant目前的市盈率遠低於預期,因爲其預測的增長高於整個市場。當我們看到強勁的收益前景和快於市場的增長速度時,我們假設潛在風險可能會給市盈率帶來巨大壓力。看來許多人確實在預期收益不穩定,因爲這些條件通常應該會提振股價。
在公司的資產負債表上可以找到許多其他重要的風險因素。我們對Assurant的免費資產負債表分析包括六張簡單的支票,將使您發現任何可能存在問題的風險。
如果您不確定Assurant的業務實力,爲什麼不瀏覽我們的互動式股票清單,其中列出了一些您可能錯過的其他公司,這些股票具有穩健的業務基本面。
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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