Market Participants Recognise IFAST Corporation Ltd.'s (SGX:AIY) Earnings
Market Participants Recognise IFAST Corporation Ltd.'s (SGX:AIY) Earnings
With a price-to-earnings (or "P/E") ratio of 74.8x iFAST Corporation Ltd. (SGX:AIY) may be sending very bearish signals at the moment, given that almost half of all companies in Singapore have P/E ratios under 11x and even P/E's lower than 7x are not unusual. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the highly elevated P/E.
Recent times have been pleasing for iFAST as its earnings have risen in spite of the market's earnings going into reverse. It seems that many are expecting the company to continue defying the broader market adversity, which has increased investors' willingness to pay up for the stock. If not, then existing shareholders might be a little nervous about the viability of the share price.
If you'd like to see what analysts are forecasting going forward, you should check out our free report on iFAST.Does Growth Match The High P/E?
The only time you'd be truly comfortable seeing a P/E as steep as iFAST's is when the company's growth is on track to outshine the market decidedly.
Taking a look back first, we see that the company grew earnings per share by an impressive 337% last year. EPS has also lifted 22% in aggregate from three years ago, mostly thanks to the last 12 months of growth. Therefore, it's fair to say the earnings growth recently has been respectable for the company.
Looking ahead now, EPS is anticipated to climb by 55% per year during the coming three years according to the five analysts following the company. With the market only predicted to deliver 8.6% per annum, the company is positioned for a stronger earnings result.
With this information, we can see why iFAST is trading at such a high P/E compared to the market. Apparently shareholders aren't keen to offload something that is potentially eyeing a more prosperous future.
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 iFAST maintains its high P/E on the strength of its forecast growth being higher than the wider market, as expected. Right now shareholders are comfortable with the P/E as they are quite confident future earnings aren't under threat. It's hard to see the share price falling strongly in the near future under these circumstances.
The company's balance sheet is another key area for risk analysis. Our free balance sheet analysis for iFAST with six simple checks will allow you to discover any risks that could be an issue.
You might be able to find a better investment than iFAST. 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.
鑑於新加坡近一半公司的市盈率(或 “市盈率”)低於11倍,即使市盈率低於7倍也並不罕見,iFast有限公司(新加坡證券交易所股票代碼:AIY)的市盈率(或 “市盈率”)爲74.8倍,目前可能會發出非常看跌的信號。儘管如此,我們需要更深入地挖掘,以確定市盈率大幅上漲是否有合理的基礎。
儘管市場收益出現逆轉,但iFast的收益卻有所增加,最近一直令iFast感到高興。看來許多人預計該公司將繼續克服更廣泛的市場逆境,這增加了投資者購買股票的意願。如果不是,那麼現有股東可能會對股價的可行性有些緊張。
如果你想了解分析師對未來的預測,你應該查看我們關於iFast的免費報告。增長與高市盈率相匹配嗎?
只有當公司的增長有望在市場上大放異彩時,你才能真正放心地看到像iFast一樣高的市盈率。
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337%。每股收益也比三年前增長了22%,這主要歸功於過去12個月的增長。因此,可以公平地說,該公司最近的收益增長是可觀的。
根據關注該公司的五位分析師的說法,展望未來,預計未來三年每股收益將每年增長55%。由於預計市場年增長率僅爲8.6%,該公司有望實現更強勁的收益業績。
有了這些信息,我們可以明白爲什麼iFast的市盈率與市場相比如此之高。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
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,iFast之所以保持較高的市盈率,是因爲其預測的增長將高於整個市場,正如預期的那樣。目前,股東對市盈率感到滿意,因爲他們非常有信心未來的收益不會受到威脅。在這種情況下,很難看到股價在不久的將來會強勁下跌。
該公司的資產負債表是風險分析的另一個關鍵領域。我們對iFast的免費資產負債表分析包括六張簡單的支票,將使您發現任何可能存在問題的風險。
你也許能找到比iFast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。
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