Investors Don't See Light At End Of IHuman Inc.'s (NYSE:IH) Tunnel And Push Stock Down 25%
Investors Don't See Light At End Of IHuman Inc.'s (NYSE:IH) Tunnel And Push Stock Down 25%
To the annoyance of some shareholders, iHuman Inc. (NYSE:IH) shares are down a considerable 25% in the last month, which continues a horrid run for the company. Instead of being rewarded, shareholders who have already held through the last twelve months are now sitting on a 38% share price drop.
After such a large drop in price, iHuman may be sending very bullish signals at the moment with its price-to-earnings (or "P/E") ratio of 3.8x, since almost half of all companies in the United States have P/E ratios greater than 17x and even P/E's higher than 33x are not unusual. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the highly reduced P/E.
iHuman certainly has been doing a great job lately as it's been growing earnings at a really rapid pace. It might be that many expect the strong earnings performance to degrade substantially, which has repressed the P/E. If that doesn't eventuate, then existing shareholders have reason to be quite optimistic about the future direction of the share price.
Want the full picture on earnings, revenue and cash flow for the company? Then our free report on iHuman will help you shine a light on its historical performance.Does Growth Match The Low P/E?
There's an inherent assumption that a company should far underperform the market for P/E ratios like iHuman's to be considered reasonable.
Taking a look back first, we see that the company grew earnings per share by an impressive 66% last year. However, the latest three year period hasn't been as great in aggregate as it didn't manage to provide any growth at all. Therefore, it's fair to say that earnings growth has been inconsistent recently for the company.
Comparing that to the market, which is predicted to deliver 11% growth in the next 12 months, the company's momentum is weaker based on recent medium-term annualised earnings results.
With this information, we can see why iHuman is trading at a P/E lower than the market. 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 Final Word
Having almost fallen off a cliff, iHuman's share price has pulled its P/E way down as well. We'd say the price-to-earnings ratio's power isn't primarily as a valuation instrument but rather to gauge current investor sentiment and future expectations.
We've established that iHuman 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.
And what about other risks? Every company has them, and we've spotted 1 warning sign for iHuman you should know about.
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.
令一些股東煩惱的是,iHuman Inc.(紐約證券交易所代碼:IH)的股價在上個月下跌了25%,這延續了該公司的糟糕表現。在過去十二個月中已經持股的股東沒有獲得回報,反而坐視股價下跌了38%。
在價格大幅下跌之後,iHuman目前可能會發出非常看漲的信號,其市盈率(或 “市盈率”)爲3.8倍,因爲幾乎一半的美國公司的市盈率大於17倍,甚至市盈率高於33倍也並不罕見。儘管如此,我們需要更深入地挖掘,以確定市盈率大幅下降是否有合理的基礎。
iHuman最近確實做得很好,因爲它的收入增長速度非常快。許多人可能預計強勁的盈利表現將大幅下滑,這抑制了市盈率。如果最終沒有出現這種情況,那麼現有股東就有理由對股價的未來走向持相當樂觀的態度。
想全面了解公司的收益、收入和現金流嗎?然後,我們關於iHuman的免費報告將幫助您了解其歷史表現。增長與低市盈率相匹配嗎?
人們固有的假設是,如果像iHuman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的每股收益增長了令人印象深刻的66%。但是,最近三年的總體表現並不那麼好,因爲它根本沒有帶來任何增長。因此,可以公平地說,該公司最近的收益增長一直不穩定。
相比之下,市場預計將在未來12個月內實現11%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。
有了這些信息,我們可以明白爲什麼iHuman的市盈率低於市場。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。
最後一句話
iHuman的股價幾乎跌下了懸崖,市盈率也大幅下跌。我們可以說,市盈率的力量主要不是作爲估值工具,而是衡量當前投資者情緒和未來預期。
我們已經確定,iHuman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。
那其他風險呢?每家公司都有它們,我們發現了一個你應該知道的iHuman警告標誌。
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。
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。
風險及免責聲明
- 分享到weixin
- 分享到qq
- 分享到facebook
- 分享到twitter
- 分享到微博
- 粘贴板
使用瀏覽器的分享功能,分享給你的好友吧