With a price-to-earnings (or "P/E") ratio of 25x Bloomin' Brands, Inc. (NASDAQ:BLMN) may be sending bearish signals at the moment, given that almost half of all companies in the United States have P/E ratios under 17x and even P/E's lower than 9x are not unusual. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the elevated P/E.
With earnings that are retreating more than the market's of late, Bloomin' Brands has been very sluggish. It might be that many expect the dismal earnings performance to recover substantially, which has kept the P/E from collapsing. You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason.
NasdaqGS:BLMN Price to Earnings Ratio vs Industry May 27th 2024
Want the full picture on analyst estimates for the company? Then our free report on Bloomin' Brands will help you uncover what's on the horizon.
Does Growth Match The High P/E?
Bloomin' Brands' P/E ratio would be typical for a company that's expected to deliver solid growth, and importantly, perform better than the market.
Taking a look back first, the company's earnings per share growth last year wasn't something to get excited about as it posted a disappointing decline of 41%. Unfortunately, that's brought it right back to where it started three years ago with EPS growth being virtually non-existent overall during that time. So it appears to us that the company has had a mixed result in terms of growing earnings over that time.
Looking ahead now, EPS is anticipated to climb by 54% each year during the coming three years according to the eleven analysts following the company. Meanwhile, the rest of the market is forecast to only expand by 10.0% per annum, which is noticeably less attractive.
With this information, we can see why Bloomin' Brands is trading at such a high P/E compared to the market. It seems most investors are expecting this strong future growth and are willing to pay more for the stock.
The Bottom Line On Bloomin' Brands' 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.
We've established that Bloomin' Brands maintains its high P/E on the strength of its forecast growth being higher than the wider market, as expected. At this stage investors feel the potential for a deterioration in earnings isn't great enough to justify a lower P/E ratio. It's hard to see the share price falling strongly in the near future under these circumstances.
We don't want to rain on the parade too much, but we did also find 4 warning signs for Bloomin' Brands (1 is significant!) that you need to be mindful of.
If P/E ratios interest you, you may wish to see this free collection of other companies with strong earnings growth and low P/E ratios.
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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.
Bloomin' Brands, Inc.(納斯達克股票代碼:BLMN)的市盈率(或"P/E")爲25倍,目前可能發出了看跌信號,因爲美國幾乎有一半公司的市盈率低於17倍,甚至低於9倍的市盈率也並不罕見。 儘管如此,我們需要更深入地挖掘以確定市盈率上升是否有合理的基礎。
Bloomin'Brands的收益下降幅度超過了最近的市場水平,因此一直非常疲軟。許多人可能預計,慘淡的收益表現將大幅恢復,這阻止了市盈率的暴跌。你真的希望如此,否則你會無緣無故地付出相當大的代價。
納斯達克GS: BLMN與行業的市盈率 2024年5月27日
想全面了解分析師對公司的估計嗎?然後,我們關於Bloomin'Brands的免費報告將幫助您發現即將發生的事情。
增長與高市盈率相匹配嗎?
Bloomin'Brands的市盈率對於一家有望實現穩健增長且重要的是表現好於市場的公司來說是典型的。
首先回顧一下,該公司去年的每股收益增長並不令人興奮,因爲它公佈了令人失望的41%的跌幅。不幸的是,這使它回到了三年前的起點,在此期間,總體每股收益幾乎不增長。因此,在我們看來,該公司的收益增長好壞參半。
根據關注該公司的11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54%。同時,預計其他市場每年僅增長10.0%,吸引力明顯降低。
有了這些信息,我們可以明白爲什麼Bloomin'Brands的市盈率與市場相比如此之高。看來大多數投資者都在期待這種強勁的未來增長,並願意爲該股支付更多費用。
Bloomin'Brands市盈率的底線
我們可以說,市盈率的力量主要不是作爲估值工具,而是衡量當前投資者情緒和未來預期。
我們已經確定,Bloomin'Brands之所以保持高市盈率,是因爲其預測的增長將高於整個市場,正如預期的那樣。在現階段,投資者認爲,收益惡化的可能性不足以證明降低市盈率是合理的。在這種情況下,很難看到股價在不久的將來會強勁下跌。
我們不想在遊行隊伍中下太多雨,但我們還發現了 Bloomin'Brands 的 4 個警告標誌(1 個很重要!)你需要注意的。
如果你對市盈率感興趣,你可能希望看到這批盈利增長強勁、市盈率低的免費公司。
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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。