Boot Barn Holdings, Inc.'s (NYSE:BOOT) Shareholders Might Be Looking For Exit
Boot Barn Holdings, Inc.'s (NYSE:BOOT) Shareholders Might Be Looking For Exit
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 Boot Barn Holdings, Inc.'s (NYSE:BOOT) P/E ratio of 18.3x. 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.
Boot Barn Holdings' negative earnings growth of late has neither been better nor worse than most other companies. It seems that few are expecting the company's earnings performance to deviate much from most other companies, which has held the P/E back. If you still like the company, you'd want its earnings trajectory to turn around before making any decisions. In saying that, existing shareholders probably aren't too pessimistic about the share price if the company's earnings continue tracking the market.
Keen to find out how analysts think Boot Barn Holdings' future stacks up against the industry? In that case, our free report is a great place to start.What Are Growth Metrics Telling Us About The P/E?
Boot Barn Holdings' P/E ratio would be typical for a company that's only expected to deliver moderate growth, and importantly, perform in line with the market.
Taking a look back first, the company's earnings per share growth last year wasn't something to get excited about as it posted a disappointing decline of 3.9%. However, a few very strong years before that means that it was still able to grow EPS by an impressive 285% in total over the last three years. Accordingly, while they would have preferred to keep the run going, shareholders would probably welcome the medium-term rates of earnings growth.
Shifting to the future, estimates from the analysts covering the company suggest earnings growth is heading into negative territory, declining 7.1% over the next year. With the market predicted to deliver 11% growth , that's a disappointing outcome.
In light of this, it's somewhat alarming that Boot Barn Holdings' P/E sits in line with the majority of other companies. Apparently many investors in the company reject the analyst cohort's pessimism and aren't willing to let go of their stock right now. There's a good chance these shareholders are setting themselves up for future disappointment if the P/E falls to levels more in line with the negative growth outlook.
The Key Takeaway
Typically, we'd caution against reading too much into price-to-earnings ratios when settling on investment decisions, though it can reveal plenty about what other market participants think about the company.
We've established that Boot Barn Holdings currently trades on a higher than expected P/E for a company whose earnings are forecast to decline. Right now we are uncomfortable with the P/E as the predicted future earnings are unlikely to support a more positive sentiment for long. This places shareholders' investments at risk and potential investors in danger of paying an unnecessary premium.
It is also worth noting that we have found 1 warning sign for Boot Barn Holdings that you need to take into consideration.
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.
在美國,市盈率中位數(或 “市盈率”)接近17倍,你對Boot Barn Holdings, Inc.感到漠不關心是可以原諒的。”s(紐約證券交易所代碼:BOOT)市盈率爲18.3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。
Boot Barn Holdings最近的負收益增長既不好也沒有比其他大多數公司差。似乎很少有人預計該公司的收益表現會與大多數其他公司有很大差異,這阻礙了市盈率。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。話雖如此,如果公司的收益繼續跟隨市場,現有股東可能不會對股價過於悲觀。
想了解分析師如何看待Boot Barn Holdings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。關於市盈率,增長指標告訴我們什麼?
Boot Barn Holdings的市盈率對於一家預計只會實現適度增長且重要的是表現與市場保持一致的公司來說是典型的。
首先回顧一下,該公司去年的每股收益增長並不令人興奮,因爲它公佈了令人失望的3.9%的跌幅。但是,在此之前的幾年非常強勁,這意味着它在過去三年中仍然能夠將每股收益總額增長285%,令人印象深刻。因此,儘管股東們本來希望保持盈利,但他們可能會對中期收益增長率表示歡迎。
展望未來,報道該公司的分析師的估計表明,收益增長將進入負值區間,明年下降7.1%。預計市場將實現11%的增長,這是一個令人失望的結果。
有鑑於此,Boot Barn Holdings的市盈率與其他大多數公司持平,這有點令人震驚。顯然,該公司的許多投資者拒絕了分析師群體的悲觀情緒,並且不願意立即放棄股票。如果市盈率降至更符合負增長前景的水平,這些股東很有可能爲未來的失望做好準備。
關鍵要點
通常,在做出投資決策時,我們會謹慎行事,不要過多地閱讀市盈率,儘管這可以充分揭示其他市場參與者對公司的看法。
我們已經確定,對於一家預計收益將下降的公司,Boot Barn Holdings目前的市盈率高於預期。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。這使股東的投資處於風險之中,潛在投資者面臨支付不必要的溢價的危險。
還值得注意的是,我們發現了Boot Barn Holdings的1個警告信號,你需要考慮這個信號。
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。
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