Hudson Technologies, Inc. (NASDAQ:HDSN) shareholders that were waiting for something to happen have been dealt a blow with a 25% share price drop in the last month. Still, a bad month hasn't completely ruined the past year with the stock gaining 36%, which is great even in a bull market.
Although its price has dipped substantially, given about half the companies in the United States have price-to-earnings ratios (or "P/E's") above 18x, you may still consider Hudson Technologies as an attractive investment with its 9.2x P/E ratio. Although, it's not wise to just take the P/E at face value as there may be an explanation why it's limited.
Hudson Technologies has been struggling lately as its earnings have declined faster than most other companies. The P/E is probably low because investors think this poor earnings performance isn't going to improve at all. If you still like the company, you'd want its earnings trajectory to turn around before making any decisions. Or at the very least, you'd be hoping the earnings slide doesn't get any worse if your plan is to pick up some stock while it's out of favour.
NasdaqCM:HDSN Price to Earnings Ratio vs Industry April 6th 2024
Keen to find out how analysts think Hudson Technologies' future stacks up against the industry? In that case, our free report is a great place to start.
How Is Hudson Technologies' Growth Trending?
Hudson Technologies' P/E ratio would be typical for a company that's only expected to deliver limited growth, and importantly, perform worse than the market.
Retrospectively, the last year delivered a frustrating 50% decrease to the company's bottom line. At least EPS has managed not to go completely backwards from three years ago in aggregate, thanks to the earlier period of growth. Therefore, it's fair to say that earnings growth has been inconsistent recently for the company.
Looking ahead now, EPS is anticipated to slump, contracting by 16% during the coming year according to the four analysts following the company. With the market predicted to deliver 11% growth , that's a disappointing outcome.
With this information, we are not surprised that Hudson Technologies is trading at a P/E lower than the market. Nonetheless, there's no guarantee the P/E has reached a floor yet with earnings going in reverse. There's potential for the P/E to fall to even lower levels if the company doesn't improve its profitability.
What We Can Learn From Hudson Technologies' P/E?
Hudson Technologies' recently weak share price has pulled its P/E below most other companies. It's argued the price-to-earnings ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator.
We've established that Hudson Technologies maintains its low P/E on the weakness of its forecast for sliding earnings, as expected. Right now shareholders are accepting the low P/E as they concede future earnings probably won't provide any pleasant surprises. It's hard to see the share price rising strongly in the near future under these circumstances.
We don't want to rain on the parade too much, but we did also find 1 warning sign for Hudson Technologies that you need to be mindful of.
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.
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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.
上個月,哈德遜科技公司(納斯達克股票代碼:HDSN)股東受到了打擊,股價下跌了25%。儘管如此,糟糕的月份並沒有完全毀掉過去的一年,該股上漲了36%,即使在牛市中也是不錯的。
儘管其價格已大幅下跌,但鑑於美國約有一半的公司的市盈率(或 “市盈率”)高於18倍,您仍然可以將哈德遜科技的市盈率視爲具有9.2倍市盈率的有吸引力的投資。但是,僅按面值計算市盈率是不明智的,因爲可以解釋爲什麼市盈率有限。
哈德森科技最近一直處於困境,因爲其收益下降速度快於大多數其他公司。市盈率可能很低,因爲投資者認爲這種糟糕的收益表現根本不會改善。如果你仍然喜歡這家公司,那麼在做出任何決定之前,你會希望其盈利軌跡得到扭轉。或者至少,如果你的計劃是在失寵的時候買入一些股票,你希望收益下滑不會變得更糟。
納斯達克股票代碼:HDSN 與行業的市盈率 2024 年 4 月 6 日
想了解分析師如何看待哈德森科技的未來與行業的對立嗎?在這種情況下,我們的免費報告是一個很好的起點。
哈德森科技的增長趨勢如何?
哈德森科技的市盈率對於一家預計增長有限,而且重要的是表現不如市場的公司來說是典型的。
回顧過去,去年公司的利潤下降了50%,令人沮喪。由於較早的增長期,至少每股收益總體上沒有與三年前相比完全倒退。因此,可以公平地說,該公司最近的收益增長一直不穩定。
展望未來,預計每股收益將下滑,根據關注該公司的四位分析師的說法,來年將收縮16%。預計市場將實現11%的增長,這是一個令人失望的結果。
有了這些信息,哈德森科技的市盈率低於市場也就不足爲奇了。儘管如此,還不能保證市盈率已達到最低水平,收益反轉。如果公司不提高盈利能力,市盈率有可能降至更低的水平。
我們可以從哈德遜科技的市盈率中學到什麼?
哈德森科技最近疲軟的股價使其市盈率低於大多數其他公司。有人認爲,市盈率在某些行業中是衡量價值的次要指標,但它可能是一個有力的商業信心指標。
我們已經確定,哈德森科技維持低市盈率,原因是其對收益下滑的預測不如預期。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。在這種情況下,很難看到股價在不久的將來強勁上漲。
我們不想在遊行隊伍中下太多雨,但我們也找到了哈德遜科技的一個警告標誌,你需要注意。
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。
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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。