Lacklustre Performance Is Driving Ningbo Shanshan Co.,Ltd.'s (SHSE:600884) Low P/E
Lacklustre Performance Is Driving Ningbo Shanshan Co.,Ltd.'s (SHSE:600884) Low P/E
Ningbo Shanshan Co.,Ltd.'s (SHSE:600884) price-to-earnings (or "P/E") ratio of 14.6x might make it look like a strong buy right now compared to the market in China, where around half of the companies have P/E ratios above 30x and even P/E's above 55x are quite common. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the highly reduced P/E.
Ningbo ShanshanLtd could be doing better as its earnings have been going backwards lately while most other companies have been seeing positive earnings growth. It seems that many are expecting the dour earnings performance to persist, which has repressed the P/E. If you still like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's out of favour.
Want the full picture on analyst estimates for the company? Then our free report on Ningbo ShanshanLtd will help you uncover what's on the horizon.What Are Growth Metrics Telling Us About The Low P/E?
Ningbo ShanshanLtd's P/E ratio would be typical for a company that's expected to deliver very poor growth or even falling earnings, and importantly, perform much worse than the market.
Retrospectively, the last year delivered a frustrating 36% decrease to the company's bottom line. Even so, admirably EPS has lifted 321% in aggregate from three years ago, notwithstanding the last 12 months. Accordingly, while they would have preferred to keep the run going, shareholders would probably welcome the medium-term rates of earnings growth.
Turning to the outlook, the next three years should generate growth of 7.7% each year as estimated by the five analysts watching the company. Meanwhile, the rest of the market is forecast to expand by 21% per annum, which is noticeably more attractive.
In light of this, it's understandable that Ningbo ShanshanLtd's P/E sits below the majority of other companies. It seems most investors are expecting to see limited future growth and are only willing to pay a reduced amount for the stock.
What We Can Learn From Ningbo ShanshanLtd's P/E?
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.
We've established that Ningbo ShanshanLtd maintains its low P/E on the weakness of its forecast growth being lower than the wider market, 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.
It is also worth noting that we have found 4 warning signs for Ningbo ShanshanLtd (2 are a bit concerning!) that you need to take into consideration.
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.
寧波杉杉股份有限公司, Ltd. 's(SHSE: 600884)市盈率(或 “市盈率”)爲14.6倍,與中國市場相比,目前看上去像是一個強勁的買盤,中國約有一半的公司的市盈率超過30倍,甚至市盈率超過55倍也很常見。儘管如此,我們需要更深入地挖掘,以確定市盈率大幅下降是否有合理的基礎。
寧波杉山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。看來許多人預計糟糕的盈利表現將持續下去,這抑制了市盈率。如果你仍然喜歡該公司,你希望情況並非如此,這樣你就有可能在股票失寵的時候買入一些股票。
想全面了解分析師對公司的估計嗎?那麼我們關於寧波杉杉有限公司的免費報告將幫助您發現即將發生的事情。關於低市盈率,增長指標告訴我們什麼?
對於一家預計增長非常糟糕甚至收益下降的公司,寧波杉杉有限公司的市盈率是典型的,更重要的是,其表現要比市場差得多。
回顧過去,去年的公司利潤下降了36%,令人沮喪。即便如此,儘管過去12個月,但每股收益仍比三年前增長了321%,令人欽佩。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。
展望來看,根據關注該公司的五位分析師的估計,未來三年每年將實現7.7%的增長。同時,預計其他市場每年將增長21%,這明顯更具吸引力。
有鑑於此,寧波杉杉股份的市盈率低於其他大多數公司是可以理解的。看來大多數投資者預計未來增長有限,只願意爲股票支付較少的金額。
我們可以從寧波杉杉股份有限公司的市盈率中學到什麼?
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。
我們已經確定,寧波杉杉股份有限公司維持較低的市盈率,原因是其預期的增長低於整個市場。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。
還值得注意的是,我們已經發現了寧波杉山有限公司的4個警告標誌(2個有點令人擔憂!)這是你需要考慮的。
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。
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