Urban One, Inc. (NASDAQ:UONE.K) Not Doing Enough For Some Investors As Its Shares Slump 32%
Urban One, Inc. (NASDAQ:UONE.K) Not Doing Enough For Some Investors As Its Shares Slump 32%
The Urban One, Inc. (NASDAQ:UONE.K) share price has fared very poorly over the last month, falling by a substantial 32%. The recent drop completes a disastrous twelve months for shareholders, who are sitting on a 54% loss during that time.
Following the heavy fall in price, Urban One may be sending very bullish signals at the moment with its price-to-earnings (or "P/E") ratio of 8.2x, since almost half of all companies in the United States have P/E ratios greater than 17x and even P/E's higher than 32x 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.
For instance, Urban One's receding earnings in recent times would have to be some food for thought. It might be that many expect the disappointing earnings performance to continue or accelerate, 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.
Want the full picture on earnings, revenue and cash flow for the company? Then our free report on Urban One will help you shine a light on its historical performance.How Is Urban One's Growth Trending?
Urban One's P/E ratio would be typical for a company that's expected to deliver very poor growth or even falling earnings, and importantly, perform much worse 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 64%. This has erased any of its gains during the last three years, with practically no change in EPS being achieved in total. 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 12% 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 Urban One's P/E sits below the majority of other companies. Apparently many shareholders weren't comfortable holding on to something they believe will continue to trail the bourse.
The Key Takeaway
Having almost fallen off a cliff, Urban One's 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.
We've established that Urban One 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. If recent medium-term earnings trends continue, it's hard to see the share price rising strongly in the near future under these circumstances.
You need to take note of risks, for example - Urban One has 4 warning signs (and 2 which don't sit too well with us) we think you should know about.
You might be able to find a better investment than Urban One. If you want a selection of possible candidates, check out this free list of interesting companies that trade on a low P/E (but have proven they can grow earnings).
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.
Urban One, Inc.(納斯達克股票代碼:UONE.K)的股價在上個月表現非常糟糕,大幅下跌了32%。對於股東來說,最近的下跌結束了災難性的十二個月,在此期間,股東虧損了54%。
在價格大幅下跌之後,Urban One目前可能會發出非常看漲的信號,其市盈率(或 “市盈率”)爲8.2倍,因爲幾乎一半的美國公司的市盈率超過17倍,甚至市盈率高於32倍也並不罕見。但是,市盈率可能很低是有原因的,需要進一步調查以確定其是否合理。
例如,Urban One最近收入的下降值得深思。許多人可能預計,令人失望的盈利表現將持續或加速,這抑制了市盈率。如果你喜歡該公司,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。
想全面了解公司的收益、收入和現金流嗎?然後,我們關於Urban One的免費報告將幫助您了解其歷史表現。Urban One的增長趨勢如何?
Urban One的市盈率對於一家預計增長非常糟糕甚至收益下降的公司來說是典型的,重要的是,其表現要比市場差得多。
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64%的跌幅。這抹去了其在過去三年中的任何收益,總體每股收益幾乎沒有變化。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12%的增長,但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,Urban One的市盈率低於其他大多數公司是可以理解的。顯然,許多股東不願意持有他們認爲將繼續落後於交易所的股票。
關鍵要點
在差點跌下懸崖之後,Urban One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。
我們已經確定,Urban One維持較低的市盈率,原因是其最近三年的增長疲軟,低於整個市場的預期。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。
例如,你需要注意風險——Urban One有4個警告標誌(還有2個對我們來說不太合適),我們認爲你應該知道。
你也許能找到比Urban One更好的投資。如果你想選擇可能的候選人,可以免費查看這份有趣的公司名單,這些公司的市盈率很低(但已經證明可以增加收益)。
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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