Jiangsu Hengshun Vinegar-Industry Co.,Ltd's (SHSE:600305) Popularity With Investors Is Clear
Jiangsu Hengshun Vinegar-Industry Co.,Ltd's (SHSE:600305) Popularity With Investors Is Clear
With a price-to-earnings (or "P/E") ratio of 72.3x Jiangsu Hengshun Vinegar-Industry Co.,Ltd (SHSE:600305) may be sending very bearish signals at the moment, given that almost half of all companies in China have P/E ratios under 30x and even P/E's lower than 18x are not unusual. However, the P/E might be quite high for a reason and it requires further investigation to determine if it's justified.
Jiangsu Hengshun Vinegar-IndustryLtd could be doing better as its earnings have been going backwards lately while most other companies have been seeing positive earnings growth. One possibility is that the P/E is high because investors think this poor earnings performance will turn the corner. If not, then existing shareholders may be extremely nervous about the viability of the share price.
Keen to find out how analysts think Jiangsu Hengshun Vinegar-IndustryLtd's future stacks up against the industry? In that case, our free report is a great place to start.Is There Enough Growth For Jiangsu Hengshun Vinegar-IndustryLtd?
Jiangsu Hengshun Vinegar-IndustryLtd's P/E ratio would be typical for a company that's expected to deliver very strong growth, and importantly, perform much better than the market.
Retrospectively, the last year delivered a frustrating 16% decrease to the company's bottom line. This means it has also seen a slide in earnings over the longer-term as EPS is down 63% in total over the last three years. Accordingly, shareholders would have felt downbeat about the medium-term rates of earnings growth.
Turning to the outlook, the next year should generate growth of 70% as estimated by the eleven analysts watching the company. With the market only predicted to deliver 39%, the company is positioned for a stronger earnings result.
In light of this, it's understandable that Jiangsu Hengshun Vinegar-IndustryLtd's P/E sits above the majority of other companies. Apparently shareholders aren't keen to offload something that is potentially eyeing a more prosperous future.
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.
As we suspected, our examination of Jiangsu Hengshun Vinegar-IndustryLtd's analyst forecasts revealed that its superior earnings outlook is contributing to its high P/E. At this stage investors feel the potential for a deterioration in earnings isn't great enough to justify a lower P/E ratio. Unless these conditions change, they will continue to provide strong support to the share price.
It's always necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Jiangsu Hengshun Vinegar-IndustryLtd (at least 1 which is a bit concerning), and understanding these should be part of your investment process.
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.
市盈率(或 “市盈率”)爲72.3倍江蘇恒順醋業有限公司, Ltd(上海證券交易所股票代碼:600305)目前可能發出了非常看跌的信號,因爲幾乎一半的中國公司的市盈率低於30倍,甚至市盈率低於18倍也並不罕見。但是,市盈率可能相當高是有原因的,需要進一步調查以確定其是否合理。
江蘇恒順醋業有限公司的表現可能會更好,因爲其收益最近一直在倒退,而大多數其他公司的收益卻出現了正增長。一種可能性是市盈率居高不下,因爲投資者認爲這種糟糕的收益表現將轉危爲安。如果不是,那麼現有股東可能會對股價的可行性感到非常擔憂。
想了解分析師如何看待江蘇恒順醋業有限公司的未來與該行業的對立嗎?在這種情況下,我們的免費報告是一個很好的起點。江蘇恒順醋業有限公司有足夠的增長嗎?
江蘇恒順醋業有限公司的市盈率對於一家預計將實現非常強勁的增長,重要的是表現要好於市場的公司來說是典型的。
回顧過去,去年的公司利潤下降了16%,令人沮喪。這意味着從長遠來看,其收益也有所下滑,因爲在過去三年中,每股收益總共下降了63%。因此,股東會對中期收益增長率感到悲觀。
談到前景,根據關注該公司的11位分析師的估計,明年將實現70%的增長。由於預計市場收益率僅爲39%,該公司有望實現更強勁的盈利業績。
有鑑於此,江蘇恒順醋業有限公司的市盈率高於其他大多數公司是可以理解的。顯然,股東們並不熱衷於轉移可能着眼於更繁榮未來的東西。
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。
正如我們所懷疑的那樣,我們對江蘇恒順醋業有限公司分析師預測的審查顯示,其優異的盈利前景是其高市盈率的原因。在現階段,投資者認爲,收益惡化的可能性不足以證明降低市盈率是合理的。除非這些條件發生變化,否則它們將繼續爲股價提供強有力的支撐。
始終有必要考慮永遠存在的投資風險幽靈。我們已經向江蘇恒順醋業有限公司確定了兩個警告信號(至少有一個有點令人擔憂),了解這些信號應該是您投資過程的一部分。
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。
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