The VCI Global Limited (NASDAQ:VCIG) share price has fared very poorly over the last month, falling by a substantial 26%. The recent drop completes a disastrous twelve months for shareholders, who are sitting on a 69% loss during that time.
Although its price has dipped substantially, VCI Global may still be sending very bullish signals at the moment with its price-to-earnings (or "P/E") ratio of 5.5x, since almost half of all companies in the United States have P/E ratios greater than 18x and even P/E's higher than 32x 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.
VCI Global certainly has been doing a great job lately as it's been growing earnings at a really rapid pace. 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 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.
NasdaqCM:VCIG Price to Earnings Ratio vs Industry May 22nd 2024
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 VCI Global's earnings, revenue and cash flow.
Is There Any Growth For VCI Global?
In order to justify its P/E ratio, VCI Global would need to produce anemic growth that's substantially trailing the market.
Taking a look back first, we see that the company grew earnings per share by an impressive 55% last year. The latest three year period has also seen an excellent 805% overall rise in EPS, aided by its short-term performance. Accordingly, shareholders would have probably welcomed those medium-term rates of earnings growth.
Comparing that to the market, which is only predicted to deliver 13% 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 VCI Global 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
VCI Global's P/E looks about as weak as its stock price lately. Generally, our preference is to limit the use of the price-to-earnings ratio to establishing what the market thinks about the overall health of a company.
We've established that VCI Global 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.
We don't want to rain on the parade too much, but we did also find 5 warning signs for VCI Global (1 shouldn't be ignored!) that you need to be mindful of.
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.
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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.
在過去的一個月裏,VCI Global Limited(納斯達克股票代碼:VCIG)的股價表現非常糟糕,大幅下跌了26%。 對於股東來說,最近的下跌結束了災難性的十二個月,在此期間,股東虧損了69%。
儘管其價格已大幅下跌,但VCI Global目前可能仍在發出非常看漲的信號,其市盈率(或 “市盈率”)爲5.5倍,因爲幾乎一半的美國公司的市盈率超過18倍,甚至市盈率高於32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。
VCI Global最近確實做得很好,因爲它的收益增長非常快。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。
納斯達克股票代碼:VCIG 對比行業的市盈率 2024 年 5 月 22 日
我們沒有分析師的預測,但您可以查看我們關於VCI Global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。
VCI Global有增長嗎?
爲了證明其市盈率是合理的,VCI Global需要實現大幅落後於市場的疲軟增長。
首先回顧一下,我們發現該公司去年的每股收益增長了令人印象深刻的55%。在短期表現的推動下,最近三年期間,每股收益總體增長了805%。因此,股東們可能會對這些中期收益增長率表示歡迎。
相比之下,市場預計在未來12個月內僅實現13%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,我們覺得奇怪的是,VCI Global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
VCI Global的市盈率最近看起來與其股價一樣疲軟。通常,我們的傾向是將市盈率的使用限制在確定市場對公司整體健康狀況的看法上。
我們已經確定,VCI Global目前的市盈率遠低於預期,因爲其最近三年的增長高於更廣泛的市場預測。當我們看到強勁的收益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。如果最近的中期收益趨勢持續下去,至少價格風險看起來很低,但投資者似乎認爲未來的收益可能會出現很大的波動。
我們不想在遊行隊伍中下太多雨,但我們還發現了 VCI Global 的 5 個警告標誌(1 個不容忽視!)這是你需要注意的。
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。
對這篇文章有反饋嗎?對內容感到擔憂嗎?請直接聯繫我們。或者,也可以發送電子郵件至編輯團隊 (at) simplywallst.com。
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。