When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") above 17x, you may consider Vishay Intertechnology, Inc. (NYSE:VSH) as an attractive investment with its 9.4x 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.
Vishay Intertechnology has been struggling lately as its earnings have declined faster than most other companies. The P/E is probably low because investors think this poor earnings performance isn't going to improve at all. You'd much rather the company wasn't bleeding earnings if you still believe in the business. Or at the very least, you'd be hoping the earnings slide doesn't get any worse if your plan is to pick up some stock while it's out of favour.
NYSE:VSH Price to Earnings Ratio vs Industry April 26th 2024
If you'd like to see what analysts are forecasting going forward, you should check out our free report on Vishay Intertechnology.
Does Growth Match The Low P/E?
Vishay Intertechnology'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 a frustrating 22% decrease to the company's bottom line. Even so, admirably EPS has lifted 177% in aggregate from three years ago, notwithstanding the last 12 months. Accordingly, while they would have preferred to keep the run going, shareholders would probably welcome the medium-term rates of earnings growth.
Shifting to the future, estimates from the five analysts covering the company suggest earnings growth is heading into negative territory, declining 6.5% per annum over the next three years. With the market predicted to deliver 11% growth each year, that's a disappointing outcome.
With this information, we are not surprised that Vishay Intertechnology is trading at a P/E lower than the market. Nonetheless, there's no guarantee the P/E has reached a floor yet with earnings going in reverse. Even just maintaining these prices could be difficult to achieve as the weak outlook is weighing down the shares.
What We Can Learn From Vishay Intertechnology's P/E?
We'd say the price-to-earnings ratio's power isn't primarily as a valuation instrument but rather to gauge current investor sentiment and future expectations.
As we suspected, our examination of Vishay Intertechnology's analyst forecasts revealed that its outlook for shrinking earnings is contributing to its low P/E. At this stage investors feel the potential for an improvement in earnings isn't great enough to justify a higher P/E ratio. It's hard to see the share price rising strongly in the near future under these circumstances.
We don't want to rain on the parade too much, but we did also find 2 warning signs for Vishay Intertechnology (1 is a bit concerning!) that you need to be mindful of.
Of course, you might also be able to find a better stock than Vishay Intertechnology. So you may wish to see this free collection of other companies that have reasonable P/E ratios and have grown earnings strongly.
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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.
当将近一半的美国公司的市盈率(或 “市盈率”)高于17倍时,您可以将Vishay Intertechnology, Inc.(纽约证券交易所代码:VSH)的市盈率(或 “市盈率”)视为具有9.4倍市盈率的有吸引力的投资。尽管如此,我们需要更深入地挖掘以确定降低市盈率是否有合理的基础。
由于其收益的下降速度快于大多数其他公司,Vishay Intertechnology最近一直处于困境。市盈率可能很低,因为投资者认为这种糟糕的收益表现根本不会改善。如果你仍然相信公司的业务,你宁愿公司不流失收益。或者至少,如果你的计划是在失宠的时候买入一些股票,你希望收益下滑不会变得更糟。
纽约证券交易所:VSH 对比行业的市盈率 2024 年 4 月 26 日
如果你想了解分析师对未来的预测,你应该查看我们关于Vishay Intertechnology的免费报告。
增长与低市盈率相匹配吗?
Vishay Intertechnology的市盈率对于一家预计增长有限,而且重要的是表现不如市场表现的公司来说是典型的。
回顾过去,去年公司的利润下降了22%,令人沮丧。即便如此,尽管过去12个月,但每股收益总额仍比三年前增长了177%,令人钦佩。因此,尽管股东们本来希望保持盈利,但他们可能会对中期收益增长率表示欢迎。
展望未来,报道该公司的五位分析师的估计表明,收益增长将进入负值区间,未来三年每年下降6.5%。预计市场每年将实现11%的增长,这是一个令人失望的结果。
有了这些信息,Vishay Intertechnology的交易市盈率低于市场也就不足为奇了。尽管如此,还不能保证市盈率已达到最低水平,收益反转。由于疲软的前景压低了股价,即使仅仅维持这些价格也可能难以实现。
我们可以从Vishay Intertechnology的市盈率中学到什么?
我们可以说,市盈率的力量主要不是作为估值工具,而是衡量当前投资者情绪和未来预期。
正如我们所怀疑的那样,我们对Vishay Intertechnology分析师预测的审查显示,其收益萎缩的前景是其低市盈率的原因。在现阶段,投资者认为,收益改善的可能性不足以证明更高的市盈率是合理的。在这种情况下,很难看到股价在不久的将来强劲上涨。
我们不想在游行队伍中下太多雨,但我们还发现了 Vishay Intertechnology 的 2 个警告标志(1 个有点令人担忧!)你需要注意的。
当然,你也可以找到比Vishay Intertechnology更好的股票。因此,你不妨免费查看其他市盈率合理且收益强劲增长的公司。
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Simply Wall St的这篇文章本质上是笼统的。我们仅使用公正的方法根据历史数据和分析师的预测提供评论,我们的文章无意作为财务建议。它不构成买入或卖出任何股票的建议,也没有考虑到您的目标或财务状况。我们的目标是为您提供由基本数据驱动的长期重点分析。请注意,我们的分析可能不考虑最新的价格敏感型公司公告或定性材料。简而言之,华尔街没有持有任何上述股票的头寸。