Further Upside For LHT Holdings Limited (SGX:BEI) Shares Could Introduce Price Risks After 31% Bounce
Further Upside For LHT Holdings Limited (SGX:BEI) Shares Could Introduce Price Risks After 31% Bounce
LHT Holdings Limited (SGX:BEI) shareholders would be excited to see that the share price has had a great month, posting a 31% gain and recovering from prior weakness. The last 30 days bring the annual gain to a very sharp 38%.
In spite of the firm bounce in price, there still wouldn't be many who think LHT Holdings' price-to-earnings (or "P/E") ratio of 12.9x is worth a mention when the median P/E in Singapore is similar at about 12x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/E.
As an illustration, earnings have deteriorated at LHT Holdings over the last year, which is not ideal at all. It might be that many expect the company to put the disappointing earnings performance behind them over the coming period, which has kept the P/E from falling. If you like the company, you'd at least be hoping this is the case so that you could potentially pick up some stock while it's not quite in favour.
Want the full picture on earnings, revenue and cash flow for the company? Then our free report on LHT Holdings will help you shine a light on its historical performance.Is There Some Growth For LHT Holdings?
The only time you'd be comfortable seeing a P/E like LHT Holdings' is when the company's growth is tracking the market closely.
If we review the last year of earnings, dishearteningly the company's profits fell to the tune of 22%. Even so, admirably EPS has lifted 49% in aggregate from three years ago, notwithstanding the last 12 months. So we can start by confirming that the company has generally done a very good job of growing earnings over that time, even though it had some hiccups along the way.
This is in contrast to the rest of the market, which is expected to grow by 9.3% over the next year, materially lower than the company's recent medium-term annualised growth rates.
In light of this, it's curious that LHT Holdings' P/E sits in line with the majority of other companies. It may be that most investors are not convinced the company can maintain its recent growth rates.
The Bottom Line On LHT Holdings' P/E
LHT Holdings appears to be back in favour with a solid price jump getting its P/E back in line with most other companies. While the price-to-earnings ratio shouldn't be the defining factor in whether you buy a stock or not, it's quite a capable barometer of earnings expectations.
We've established that LHT Holdings currently trades on a 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 pressure on the P/E ratio. At least the risk of a price drop looks to be subdued if recent medium-term earnings trends continue, but investors seem to think future earnings could see some volatility.
It is also worth noting that we have found 3 warning signs for LHT Holdings (1 can't be ignored!) that you need to take into consideration.
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.
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.
LHT Holdings Limited(新加坡證券交易所股票代碼:BEI)的股東們會很高興看到股價經歷了一個不錯的月份,漲幅爲31%,並從先前的疲軟中恢復過來。在過去的30天裏,年增長率達到了非常大幅的38%。
儘管股價出現反彈,但當新加坡市盈率中位數約爲12倍時,仍然沒有多少人認爲LHT Holdings12.9倍的市盈率(或 “市盈率”)值得一提。但是,如果市盈率沒有合理的基礎,投資者可能會忽略明顯的機會或潛在的挫折。
舉例來說,LHT Holdings的收益在過去一年中有所下降,這根本不理想。許多人可能預計,該公司將在未來一段時間內將令人失望的收益表現拋在腦後,這阻止了市盈率的下降。如果你喜歡這家公司,你至少希望情況確實如此,這樣你就有可能在它不太受青睞的情況下買入一些股票。
想全面了解公司的收益、收入和現金流嗎?那麼我們關於LHT Holdings的免費報告將幫助您了解其歷史表現。LHT Holdings有增長嗎?
只有當公司的增長密切關注市場時,你才能放心地看到像LHT Holdings這樣的市盈率。
如果我們回顧一下去年的收益,令人沮喪的是,該公司的利潤下降了22%。即便如此,儘管過去12個月,但每股收益仍比三年前增長了49%,令人欽佩。因此,我們可以首先確認該公司在此期間在增加收益方面總體上做得非常出色,儘管在此過程中遇到了一些小問題。
這與其他市場形成鮮明對比,預計明年市場將增長9.3%,大大低於該公司最近的中期年化增長率。
有鑑於此,奇怪的是,LHT Holdings的市盈率與其他大多數公司持平。可能是大多數投資者不相信該公司能夠維持其近期的增長率。
LHT Holdings市盈率的底線
LHT Holdings似乎重新受到青睞,價格穩步上漲,使其市盈率恢復了與大多數其他公司持平。儘管市盈率不應該成爲決定你是否買入股票的決定性因素,但它是衡量收益預期的有力晴雨表。
我們已經確定,LHT Holdings目前的市盈率低於預期,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壓力。如果最近的中期收益趨勢持續下去,至少價格下跌的風險似乎有所減弱,但投資者似乎認爲未來的收益可能會出現一些波動。
還值得注意的是,我們已經發現了LHT Holdings的3個警告信號(1個不容忽視!)這是你需要考慮的。
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?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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