E. Bon Holdings Limited (HKG:599) shareholders won't be pleased to see that the share price has had a very rough month, dropping 29% and undoing the prior period's positive performance. The drop over the last 30 days has capped off a tough year for shareholders, with the share price down 29% in that time.
Even after such a large drop in price, given close to half the companies in Hong Kong have price-to-earnings ratios (or "P/E's") below 8x, you may still consider E. Bon Holdings as a stock to avoid entirely with its 14.4x P/E ratio. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the highly elevated P/E.
E. Bon Holdings has been doing a good job lately as it's been growing earnings at a solid pace. One possibility is that the P/E is high because investors think this respectable earnings growth will be enough to outperform the broader market in the near future. If not, then existing shareholders may be a little nervous about the viability of the share price.
See our latest analysis for E. Bon Holdings
SEHK:599 Price Based on Past Earnings October 9th 2022 Although there are no analyst estimates available for E. Bon Holdings, take a look at this
free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.
Does Growth Match The High P/E?
In order to justify its P/E ratio, E. Bon Holdings would need to produce outstanding growth well in excess of the market.
Retrospectively, the last year delivered a decent 10% gain to the company's bottom line. Still, lamentably EPS has fallen 21% in aggregate from three years ago, which is disappointing. Accordingly, shareholders would have felt downbeat about the medium-term rates of earnings growth.
Weighing that medium-term earnings trajectory against the broader market's one-year forecast for expansion of 20% shows it's an unpleasant look.
In light of this, it's alarming that E. Bon Holdings' P/E sits above the majority of other companies. It seems most investors are ignoring the recent poor growth rate and are hoping for a turnaround in the company's business prospects. There's a very good chance existing shareholders are setting themselves up for future disappointment if the P/E falls to levels more in line with the recent negative growth rates.
What We Can Learn From E. Bon Holdings' P/E?
Even after such a strong price drop, E. Bon Holdings' P/E still exceeds the rest of the market significantly. 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.
Our examination of E. Bon Holdings revealed its shrinking earnings over the medium-term aren't impacting its high P/E anywhere near as much as we would have predicted, given the market is set to grow. Right now we are increasingly uncomfortable with the high P/E as this earnings performance is highly unlikely to support such positive sentiment for long. If recent medium-term earnings trends continue, it will place shareholders' investments at significant risk and potential investors in danger of paying an excessive premium.
Plus, you should also learn about these 4 warning signs we've spotted with E. Bon Holdings (including 1 which is significant).
Of course, you might also be able to find a better stock than E. Bon Holdings. So you may wish to see this free collection of other companies that sit on P/E's below 20x and have grown earnings strongly.
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宜邦集团有限公司(HKG:599)股东不会乐于看到股价经历了非常艰难的一个月,下跌了29%,抹去了前一段时间的积极表现。过去30天的下跌为股东们艰难的一年画上了句号,股价在此期间下跌了29%。
即使股价下跌如此之大,考虑到香港近一半的公司的市盈率(或“市盈率”)低于8倍,你仍可能认为宜邦控股是一只完全避免上市的股票,其市盈率为14.4倍。尽管如此,我们还需要更深入地挖掘,以确定市盈率大幅上升是否有合理的基础。
E.Bon Holdings最近一直做得很好,因为它的收益一直在稳步增长。一种可能性是,市盈率很高,因为投资者认为,这种可观的收益增长在不久的将来将足以跑赢大盘。如果不是,那么现有股东可能会对股价的生存能力感到有点紧张。
查看我们对E.Bon Holdings的最新分析
联交所:599基于过去收益的价格2022年10月9日虽然没有分析师对易邦控股的估计,但看看这个。
免费丰富的数据可视化,看看公司的收益、收入和现金流是如何堆积的。
增长是否与高市盈率相匹配?
为了证明其市盈率是合理的,E.Bon Holdings需要实现远远超出市场的出色增长。
回顾过去一年,该公司的利润实现了10%的可观增长。尽管如此,令人遗憾的是,每股收益与三年前相比总共下降了21%,这令人失望。因此,股东们会对中期盈利增长率感到悲观。
将这一中期收益轨迹与大盘一年增长20%的预期进行比较,可以看出这是一个令人不快的前景。
有鉴于此,E.Bon Holdings的市盈率高于其他大多数公司,这令人担忧。似乎大多数投资者都忽视了最近糟糕的增长率,并希望该公司的业务前景有所好转。如果市盈率下降到与最近负增长更一致的水平,现有股东很有可能会让自己未来感到失望。
我们可以从易邦控股的市盈率中学到什么?
即使在如此强劲的价格下跌之后,E.Bon Holdings的市盈率仍然远远高于市场的其他股票。有人认为,市盈率是衡量某些行业价值的次要指标,但它可以成为一个强大的商业信心指标。
我们对E.Bon Holdings的调查显示,考虑到市场将会增长,该公司中期收益的缩水对其高市盈率的影响并不像我们预期的那么大。目前,我们对高市盈率越来越感到不安,因为这种盈利表现不太可能长期支持这种积极情绪。如果近期的中期盈利趋势持续下去,将使股东的投资面临重大风险,潜在投资者面临支付过高溢价的危险。
另外,你还应该了解这些我们在E.Bon Holdings发现了4个警告信号(包括有意义的1)。
当然了,你也许还能找到一只比E.Bon Holdings更好的股票。所以你可能想看看这个免费市盈率低于20倍、盈利增长强劲的其他公司的集合。
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本文由Simply Wall St.撰写,具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论,我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议,也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意,我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。