Huntington Ingalls Industries, Inc.'s (NYSE:HII) Business Is Yet to Catch Up With Its Share Price
Huntington Ingalls Industries, Inc.'s (NYSE:HII) Business Is Yet to Catch Up With Its Share Price
With a median price-to-earnings (or "P/E") ratio of close to 17x in the United States, you could be forgiven for feeling indifferent about Huntington Ingalls Industries, Inc.'s (NYSE:HII) P/E ratio of 16x. While this might not raise any eyebrows, if the P/E ratio is not justified investors could be missing out on a potential opportunity or ignoring looming disappointment.
Huntington Ingalls Industries certainly has been doing a good job lately as its earnings growth has been positive while most other companies have been seeing their earnings go backwards. It might be that many expect the strong earnings performance to deteriorate like the rest, which has kept the P/E from rising. If not, then existing shareholders have reason to be feeling optimistic about the future direction of the share price.
If you'd like to see what analysts are forecasting going forward, you should check out our free report on Huntington Ingalls Industries.How Is Huntington Ingalls Industries' Growth Trending?
The only time you'd be comfortable seeing a P/E like Huntington Ingalls Industries' is when the company's growth is tracking the market closely.
Taking a look back first, we see that the company grew earnings per share by an impressive 18% last year. Although, its longer-term performance hasn't been as strong with three-year EPS growth being relatively non-existent overall. Accordingly, shareholders probably wouldn't have been overly satisfied with the unstable medium-term growth rates.
Turning to the outlook, the next three years should generate growth of 7.5% each year as estimated by the eleven analysts watching the company. With the market predicted to deliver 10% growth per annum, the company is positioned for a weaker earnings result.
In light of this, it's curious that Huntington Ingalls Industries' P/E sits in line with the majority of other companies. Apparently many investors in the company are less bearish than analysts indicate and aren't willing to let go of their stock right now. Maintaining these prices will be difficult to achieve as this level of earnings growth is likely to weigh down the shares eventually.
The Final Word
While the price-to-earnings ratio shouldn't be the defining factor in whether you buy a stock or not, it's quite a capable barometer of earnings expectations.
We've established that Huntington Ingalls Industries currently trades on a higher than expected P/E since its forecast growth is lower than the wider market. Right now we are uncomfortable with the P/E as the predicted future earnings aren't likely to support a more positive sentiment for long. Unless these conditions improve, it's challenging to accept these prices as being reasonable.
You always need to take note of risks, for example - Huntington Ingalls Industries has 3 warning signs we think you should be aware of.
You might be able to find a better investment than Huntington Ingalls Industries. 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.
在美國,市盈率中位數(或 “市盈率”)接近17倍,你對亨廷頓英格爾斯工業公司漠不關心是可以原諒的。”s(紐約證券交易所代碼:HII)市盈率爲16倍。儘管這可能不會引起任何關注,但如果市盈率不合理,投資者可能會錯過潛在的機會或無視迫在眉睫的失望。
亨廷頓英格爾斯工業公司最近無疑做得很好,因爲其收益增長是正的,而大多數其他公司的收益卻在倒退。許多人可能預計,強勁的收益表現將像其他人一樣惡化,這阻礙了市盈率的上升。如果不是,那麼現有股東就有理由對股價的未來走向感到樂觀。
如果你想了解分析師對未來的預測,你應該查看我們關於亨廷頓英格爾斯工業的免費報告。亨廷頓英格爾斯工業的增長趨勢如何?
只有當公司的增長密切關注市場時,你才能放心地看到像亨廷頓英格爾斯工業公司這樣的市盈率。
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18%。但是,其長期表現並不那麼強勁,三年期每股收益總體上相對不增長。因此,股東們可能不會對不穩定的中期增長率過於滿意。
展望來看,根據關注該公司的11位分析師的估計,未來三年每年將實現7.5%的增長。預計市場每年將實現10%的增長,因此該公司的盈利業績將疲軟。
有鑑於此,奇怪的是,亨廷頓英格爾斯工業公司的市盈率與其他大多數公司持平。顯然,該公司的許多投資者沒有分析師所表示的那麼看跌,並且不願意立即放棄股票。維持這些價格將很難實現,因爲這種收益增長水平最終可能會壓低股價。
最後一句話
雖然市盈率不應該是決定你是否買入股票的決定性因素,但它是衡量收益預期的有力晴雨表。
我們已經確定,亨廷頓英格爾斯工業公司目前的市盈率高於預期,因爲其預測的增長低於整個市場。目前,我們對市盈率感到不舒服,因爲預期的未來收益不太可能長期支撐更積極的情緒。除非這些條件有所改善,否則很難接受這些合理的價格。
例如,你需要時刻注意風險,亨廷頓英格爾斯工業公司有3個警告信號,我們認爲你應該注意。
你也許能找到比亨廷頓英格爾斯工業公司更好的投資。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。
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