Market Might Still Lack Some Conviction On Tye Soon Limited (SGX:BFU) Even After 35% Share Price Boost
Market Might Still Lack Some Conviction On Tye Soon Limited (SGX:BFU) Even After 35% Share Price Boost
Tye Soon Limited (SGX:BFU) shareholders are no doubt pleased to see that the share price has bounced 35% in the last month, although it is still struggling to make up recently lost ground. Not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 22% in the last twelve months.
Even after such a large jump in price, Tye Soon may still be sending very bullish signals at the moment with its price-to-earnings (or "P/E") ratio of 5x, since almost half of all companies in Singapore have P/E ratios greater than 13x and even P/E's higher than 23x are not unusual. However, the P/E might be quite low for a reason and it requires further investigation to determine if it's justified.
Earnings have risen at a steady rate over the last year for Tye Soon, which is generally not a bad outcome. It might be that many expect the respectable earnings performance to degrade, which has repressed the P/E. 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.
See our latest analysis for Tye Soon
Want the full picture on earnings, revenue and cash flow for the company? Then our free report on Tye Soon will help you shine a light on its historical performance.How Is Tye Soon's Growth Trending?
There's an inherent assumption that a company should far underperform the market for P/E ratios like Tye Soon's to be considered reasonable.
Taking a look back first, we see that the company managed to grow earnings per share by a handy 7.2% last year. Pleasingly, EPS has also lifted 610% in aggregate from three years ago, partly thanks to the last 12 months of growth. Therefore, it's fair to say the earnings growth recently has been superb for the company.
Weighing that recent medium-term earnings trajectory against the broader market's one-year forecast for expansion of 9.2% shows it's noticeably more attractive on an annualised basis.
In light of this, it's peculiar that Tye Soon's P/E sits below the majority of other companies. Apparently some shareholders believe the recent performance has exceeded its limits and have been accepting significantly lower selling prices.
The Bottom Line On Tye Soon's P/E
Shares in Tye Soon are going to need a lot more upward momentum to get the company's P/E out of its slump. 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.
Our examination of Tye Soon revealed its three-year earnings trends aren't contributing to its P/E anywhere near as much as we would have predicted, given they look better than current market expectations. There could be some major unobserved threats to earnings preventing the P/E ratio from matching this positive performance. It appears many are indeed anticipating earnings instability, because the persistence of these recent medium-term conditions would normally provide a boost to the share price.
You need to take note of risks, for example - Tye Soon has 4 warning signs (and 2 which make us uncomfortable) we think you should know about.
It's important to make sure you look for a great company, not just the first idea you come across. So take a peek at this free list of interesting companies with strong recent earnings growth (and a low P/E).
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.
Tye Soon Limited(新加坡證券交易所股票代碼:BFU)股東無疑很高興看到股價在上個月反彈了35%,儘管該公司仍在努力彌補最近的失地。並非所有股東都會感到歡欣鼓舞,因爲在過去的十二個月中,股價仍下跌了22%,令人失望。
即使在價格大幅上漲之後,Tye Soon 目前仍可能發出非常看漲的信號,其市盈率(或 “市盈率”)爲5倍,因爲新加坡幾乎有一半的公司市盈率超過13倍,甚至市盈率高於23倍也並不罕見。但是,市盈率之低可能是有原因的,需要進一步調查才能確定其是否合理。
去年,Tye Soon 的收益穩步增長,這通常不是一個壞結果。許多人可能預計可觀的收益表現會下降,這抑制了市盈率。如果你喜歡這家公司,你會希望情況並非如此,這樣你就有可能在股票失寵的時候買入一些股票。
查看我們對 Tye Soon 的最新分析
想全面了解公司的收益、收入和現金流嗎?然後,我們關於Tye Soon的免費報告將幫助您了解其歷史表現。Tye Soon 的增長趨勢如何?
有一種固有的假設是,如果像Tye Soon這樣的市盈率被認爲是合理的,公司的表現應該遠遠低於市場。
首先回顧一下,我們發現該公司去年成功地將每股收益增長了7.2%。令人高興的是,每股收益也比三年前增長了610%,這在一定程度上要歸功於過去12個月的增長。因此,可以公平地說,該公司最近的收益增長非常好。
權衡最近的中期收益軌跡與大盤一年來對9.2%的擴張預測相比,按年計算,其吸引力明顯更大。
有鑑於此,奇怪的是,泰順的市盈率低於大多數其他公司。顯然,一些股東認爲最近的表現已經超出了極限,並且一直在接受大幅降低的銷售價格。
Tye Soon 市盈率的底線
Tye Soon 的股票需要更多的上漲勢頭才能使該公司的市盈率擺脫低迷。通常,我們傾向於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。
我們對Tye Soon的審查顯示,鑑於Tye Soon看起來好於當前的市場預期,其三年收益趨勢對其市盈率的貢獻沒有我們預期的那麼大。可能存在一些未觀察到的重大收益威脅,使市盈率無法與這種積極表現相提並論。看來許多人確實在預期收益不穩定,因爲最近的這些中期條件的持續存在通常會提振股價。
例如,你需要注意風險——Tye Soon 有 4 個警告信號(其中 2 個讓我們感到不舒服),我們認爲你應該知道。
重要的是要確保你尋找一家優秀的公司,而不僅僅是你遇到的第一個想法。因此,來看看這份免費名單,列出了最近收益增長強勁(市盈率低)的有趣公司。
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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