Lacklustre Performance Is Driving Corporación América Airports S.A.'s (NYSE:CAAP) Low P/E
Lacklustre Performance Is Driving Corporación América Airports S.A.'s (NYSE:CAAP) Low P/E
When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") above 17x, you may consider Corporación América Airports S.A. (NYSE:CAAP) as an attractive investment with its 10.9x P/E ratio. However, the P/E might be low for a reason and it requires further investigation to determine if it's justified.
With its earnings growth in positive territory compared to the declining earnings of most other companies, Corporación América Airports has been doing quite well of late. It might be that many expect the strong earnings performance to degrade substantially, possibly more than the market, 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.
If you'd like to see what analysts are forecasting going forward, you should check out our free report on Corporación América Airports.How Is Corporación América Airports' Growth Trending?
In order to justify its P/E ratio, Corporación América Airports would need to produce sluggish growth that's trailing the market.
If we review the last year of earnings growth, the company posted a terrific increase of 42%. Still, EPS has barely risen at all from three years ago in total, which is not ideal. Accordingly, shareholders probably wouldn't have been overly satisfied with the unstable medium-term growth rates.
Shifting to the future, estimates from the dual analysts covering the company suggest earnings growth is heading into negative territory, declining 21% over the next year. Meanwhile, the broader market is forecast to expand by 11%, which paints a poor picture.
In light of this, it's understandable that Corporación América Airports' P/E would sit below the majority of other companies. However, shrinking earnings are unlikely to lead to a stable P/E over the longer term. Even just maintaining these prices could be difficult to achieve as the weak outlook is weighing down the shares.
The Key Takeaway
Using the price-to-earnings ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects.
We've established that Corporación América Airports maintains its low P/E on the weakness of its forecast for sliding earnings, as expected. At this stage investors feel the potential for an improvement in earnings isn't great enough to justify a higher P/E ratio. It's hard to see the share price rising strongly in the near future under these circumstances.
Before you settle on your opinion, we've discovered 2 warning signs for Corporación América Airports (1 is a bit unpleasant!) that you should be aware of.
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.
當將近一半的美國公司的市盈率(或 “市盈率”)高於17倍時,您可以將美國機場公司(紐約證券交易所代碼:CAAP)的市盈率爲10.9倍,視爲具有吸引力的投資。但是,市盈率之低可能是有原因的,需要進一步調查以確定其是否合理。
與大多數其他公司的收益下降相比,Corporacion America機場的收益增長處於正值區間,最近表現良好。許多人可能預計,強勁的盈利表現將大幅下降,可能超過抑制市盈率的市場。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。
如果你想了解分析師對未來的預測,你應該查看我們關於美國機場公司的免費報告。美國機場公司的增長趨勢如何?
爲了證明其市盈率是合理的,美國機場公司需要實現落後於市場的緩慢增長。
如果我們回顧一下去年的收益增長,該公司公佈了42%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,股東們可能不會對不穩定的中期增長率過於滿意。
展望未來,負責該公司的雙重分析師的估計表明,收益增長將進入負值區間,明年下降21%。同時,預計整個市場將增長11%,這描繪了一幅糟糕的畫面。
有鑑於此,美國機場公司的市盈率將低於其他大多數公司是可以理解的。但是,從長遠來看,收益萎縮不太可能帶來穩定的市盈率。由於疲軟的前景壓低了股價,即使僅僅維持這些價格也可能難以實現。
關鍵要點
僅使用市盈率來確定是否應該出售股票是不明智的,但它可以作爲公司未來前景的實用指南。
我們已經確定,正如預期的那樣,由於對收益下滑的預測疲軟,美國機場公司維持了較低的市盈率。在現階段,投資者認爲,收益改善的可能性不足以證明更高的市盈率是合理的。在這種情況下,很難看到股價在不久的將來強勁上漲。
在你確定自己的意見之前,我們已經發現了 Corporacion America Airports 的 2 個警告標誌(1 個有點不愉快!)你應該注意的。
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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