China CBM Group Company Limited (HKG:8270) shareholders that were waiting for something to happen have been dealt a blow with a 29% share price drop in the last month. Looking at the bigger picture, even after this poor month the stock is up 89% in the last year.
Although its price has dipped substantially, China CBM Group's price-to-earnings (or "P/E") ratio of 1.7x might still make it look like a strong buy right now compared to the market in Hong Kong, where around half of the companies have P/E ratios above 10x and even P/E's above 21x are quite common. Although, it's not wise to just take the P/E at face value as there may be an explanation why it's so limited.
For example, consider that China CBM Group's financial performance has been pretty ordinary lately as earnings growth is non-existent. It might be that many expect the uninspiring earnings performance to worsen, which has repressed the P/E. If not, then existing shareholders may be feeling optimistic about the future direction of the share price.
See our latest analysis for China CBM Group
SEHK:8270 Price to Earnings Ratio vs Industry June 7th 2023
Want the full picture on earnings, revenue and cash flow for the company? Then our free report on China CBM Group will help you shine a light on its historical performance.
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 CBM Group's to be considered reasonable.
If we review the last year of earnings, the company posted a result that saw barely any deviation from a year ago. Likewise, not much has changed from three years ago as earnings have been stuck during that whole time. So it seems apparent to us that the company has struggled to grow earnings meaningfully over that time.
Weighing that recent medium-term earnings trajectory against the broader market's one-year forecast for expansion of 25% shows it's noticeably less attractive on an annualised basis.
In light of this, it's understandable that China CBM Group's P/E sits below the majority of other companies. It seems most investors are expecting to see the recent limited growth rates continue into the future and are only willing to pay a reduced amount for the stock.
What We Can Learn From China CBM Group's P/E?
Shares in China CBM Group have plummeted and its P/E is now low enough to touch the ground. Using the price-to-earnings ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects.
We've established that China CBM Group 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.
We don't want to rain on the parade too much, but we did also find 4 warning signs for China CBM Group 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.
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.
中国煤层气集团有限公司 (HKG: 8270) 上个月股价下跌了29%,这给等待事情发生的股东带来了打击。从大局来看,即使在经历了这个糟糕的月份之后,该股在去年仍上涨了89%。
尽管其价格大幅下跌,但与香港市场相比,中国煤层气集团1.7倍的市盈率(或 “市盈率”)可能仍使其看起来像是强势买入。在香港,大约一半的公司的市盈率超过10倍,甚至市盈率超过21倍也很常见。但是,仅按面值计算市盈率是不明智的,因为可以解释为什么市盈率如此有限。
例如,假设中国煤层气集团最近的财务表现相当普通,因为收益没有增长。可能是许多人预计平淡无奇的收益表现将恶化,这抑制了市盈率。否则,现有股东可能会对股价的未来走向感到乐观。
查看我们对中国煤层气集团的最新分析
SEHK: 8270 市盈率与行业比率 2023 年 6 月 7 日
想全面了解公司的收益、收入和现金流吗?然后我们的免费的中国煤层气集团的报告将帮助您了解其历史表现。
关于低市盈率,增长指标告诉我们什么?
人们固有的假设是,如果像中国煤层气集团这样的市盈率被认为是合理的,那么一家公司的表现应该远远低于市场。
如果我们回顾一下去年的收益,该公司公布的业绩与一年前几乎没有任何偏差。同样,与三年前相比,变化不大,因为在这段时间里,收益一直停滞不前。因此,在我们看来,很明显,在此期间,该公司一直在努力实现有意义的收益增长。
权衡最近的中期收益轨迹与整个市场一年内对25%的扩张预测之间的权衡表明,按年计算,其吸引力明显降低。
有鉴于此,中国煤层气集团的市盈率低于大多数其他公司是可以理解的。看来大多数投资者都预计近期有限的增长率将持续到未来,他们只愿意为该股支付较少的金额。
我们可以从中国煤层气集团的市盈率中学到什么?
中国煤层气集团的股价暴跌,其市盈率现在已经足够低了,足以触及地面。仅使用市盈率来确定是否应该出售股票是不明智的,但它可以作为公司未来前景的实用指南。
我们已经确定,正如预期的那样,中国煤层气集团维持其低市盈率,原因是其最近三年的增长疲软,低于更广泛的市场预期。目前,股东们正在接受低市盈率,因为他们承认未来的收益可能不会带来任何惊喜。除非最近的中期条件有所改善,否则它们将继续构成股价在这些水平附近的障碍。
我们不想在游行队伍中下太多雨,但我们也发现了 中国煤层气集团的4个警告信号 这是你需要注意的。
如果你对市盈率感兴趣,你可能希望看到这个 免费的 汇集了其他盈利增长强劲且市盈率低的公司。
对这篇文章有反馈吗?担心内容吗? 请直接联系我们。 或者,给编辑团队 (at) simplywallst.com 发送电子邮件。
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,也没有考虑您的目标或财务状况。我们的目标是为您提供由基本面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公司公告或定性材料。简而言之,华尔街在上述任何股票中都没有头寸。