Why Investors Shouldn't Be Surprised By XMH Holdings Ltd.'s (SGX:BQF) 29% Share Price Plunge
Why Investors Shouldn't Be Surprised By XMH Holdings Ltd.'s (SGX:BQF) 29% Share Price Plunge
The XMH Holdings Ltd. (SGX:BQF) share price has softened a substantial 29% over the previous 30 days, handing back much of the gains the stock has made lately. Still, a bad month hasn't completely ruined the past year with the stock gaining 31%, which is great even in a bull market.
Although its price has dipped substantially, XMH Holdings may still be sending very bullish signals at the moment with its price-to-earnings (or "P/E") ratio of 3.7x, 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. 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.
With earnings growth that's exceedingly strong of late, XMH Holdings has been doing very well. It might be that many expect the strong earnings performance to degrade substantially, 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 XMH Holdings
Although there are no analyst estimates available for XMH Holdings, take a look at this free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.What Are Growth Metrics Telling Us About The Low P/E?
The only time you'd be truly comfortable seeing a P/E as depressed as XMH Holdings' is when the company's growth is on track to lag the market decidedly.
If we review the last year of earnings growth, the company posted a terrific increase of 212%. Still, EPS has barely risen at all from three years ago in total, which is not ideal. So it appears to us that the company has had a mixed result in terms of growing earnings over that time.
Comparing that to the market, which is predicted to deliver 9.2% growth in the next 12 months, the company's momentum is weaker based on recent medium-term annualised earnings results.
In light of this, it's understandable that XMH Holdings' 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.
The Key Takeaway
Having almost fallen off a cliff, XMH Holdings' share price has pulled its P/E way down as well. Typically, we'd caution against reading too much into price-to-earnings ratios when settling on investment decisions, though it can reveal plenty about what other market participants think about the company.
As we suspected, our examination of XMH Holdings revealed its three-year earnings trends are contributing to its low P/E, given they look worse than current market expectations. Right now shareholders are accepting the low P/E as they concede future earnings probably won't provide any pleasant surprises. If recent medium-term earnings trends continue, it's hard to see the share price rising strongly in the near future under these circumstances.
Before you take the next step, you should know about the 6 warning signs for XMH Holdings (2 are concerning!) that we have uncovered.
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.
XMH Holdings Ltd.(新加坡證券交易所股票代碼:BQF)的股價在過去30天中大幅下跌了29%,收回了該股最近的大部分漲幅。儘管如此,糟糕的月份並沒有完全毀掉過去的一年,該股上漲了31%,即使在牛市中也是不錯的。
儘管其價格已大幅下跌,但XMH Holdings目前可能仍在發出非常看漲的信號,其市盈率(或 “市盈率”)爲3.7倍,因爲新加坡幾乎有一半公司的市盈率大於13倍,甚至市盈率高於23倍也並不罕見。但是,僅按面值計算市盈率是不明智的,因爲可以解釋爲什麼市盈率如此有限。
由於最近收益增長異常強勁,XMH Holdings一直表現良好。可能是許多人預計強勁的收益表現將大幅下滑,這抑制了市盈率。如果你喜歡該公司,你希望情況並非如此,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 XMH Holdings 的最新分析
儘管沒有分析師對XMH Holdings的估計,但請看一下這個免費的數據豐富的可視化圖表,看看該公司如何積累收益、收入和現金流。關於低市盈率,增長指標告訴我們什麼?
只有當公司的增長有望明顯落後於市場時,你才能真正放心地看到像XMH Holdings一樣低迷的市盈率。
如果我們回顧一下去年的收益增長,該公司公佈了212%的驚人增長。儘管如此,每股收益總額與三年前相比幾乎沒有增長,這並不理想。因此,在我們看來,該公司的收益增長好壞參半。
相比之下,市場預計將在未來12個月內實現9.2%的增長,根據最近的中期年化收益業績,該公司的勢頭較弱。
有鑑於此,可以理解XMH Holdings的市盈率低於大多數其他公司。看來大多數投資者都預計近期的有限增長率將持續到未來,他們只願意爲該股支付較低的金額。
關鍵要點
在差點跌下懸崖之後,XMH Holdings的股價也大幅下跌了市盈率。通常,在做出投資決策時,我們謹慎行事,不要過多地解讀市盈率,儘管這可以充分揭示其他市場參與者對公司的看法。
正如我們所懷疑的那樣,我們對XMH Holdings的審查顯示,其三年收益趨勢是其市盈率低的原因,因爲這些趨勢看起來比當前的市場預期還要糟糕。目前,股東們正在接受低市盈率,因爲他們承認未來的收益可能不會帶來任何驚喜。如果最近的中期收益趨勢繼續下去,在這種情況下,很難看到股價在不久的將來強勁上漲。
在你採取下一步行動之前,你應該了解XMH Holdings的6個警告信號(2個令人擔憂!)這是我們發現的。
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提供基於歷史數據和分析師預測的評論,我們的文章並非旨在提供財務建議。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,我們的分析可能不會考慮最新的價格敏感型公司公告或定性材料。華爾街只是沒有持有上述任何股票的頭寸。
譯文內容由第三人軟體翻譯。
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