To the annoyance of some shareholders, Sunfonda Group Holdings Limited (HKG:1771) shares are down a considerable 27% in the last month, which continues a horrid run for the company. For any long-term shareholders, the last month ends a year to forget by locking in a 61% share price decline.
Following the heavy fall in price, given close to half the companies in Hong Kong have price-to-earnings ratios (or "P/E's") above 9x, you may consider Sunfonda Group Holdings as a highly attractive investment with its 2.7x P/E ratio. However, the P/E might be quite low for a reason and it requires further investigation to determine if it's justified.
For instance, Sunfonda Group Holdings' receding earnings in recent times would have to be some food for thought. One possibility is that the P/E is low because investors think the company won't do enough to avoid underperforming the broader market in the near future. However, if this doesn't eventuate then existing shareholders may be feeling optimistic about the future direction of the share price.
See our latest analysis for Sunfonda Group Holdings
SEHK:1771 Price Based on Past Earnings October 18th 2022 Although there are no analyst estimates available for Sunfonda Group Holdings, take a look at this
free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.
Is There Any Growth For Sunfonda Group Holdings?
In order to justify its P/E ratio, Sunfonda Group Holdings would need to produce anemic growth that's substantially trailing the market.
Retrospectively, the last year delivered a frustrating 36% decrease to the company's bottom line. This has soured the latest three-year period, which nevertheless managed to deliver a decent 9.0% overall rise in EPS. Although it's been a bumpy ride, it's still fair to say the earnings growth recently has been mostly respectable for the company.
Comparing that to the market, which is predicted to deliver 20% growth in the next 12 months, the company's momentum is weaker based on recent medium-term annualised earnings results.
With this information, we can see why Sunfonda Group Holdings is trading at a P/E lower than the market. It seems most investors are expecting to see the recent limited growth rates continue into the future and are only willing to pay a reduced amount for the stock.
The Bottom Line On Sunfonda Group Holdings' P/E
Having almost fallen off a cliff, Sunfonda Group Holdings' share price has pulled its P/E way down as well. 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.
As we suspected, our examination of Sunfonda Group Holdings revealed its three-year earnings trends are contributing to its low P/E, given they look worse than current market expectations. Right now shareholders are accepting the low P/E as they concede future earnings probably won't provide any pleasant surprises. Unless the recent medium-term conditions improve, they will continue to form a barrier for the share price around these levels.
It's always necessary to consider the ever-present spectre of investment risk. We've identified 4 warning signs with Sunfonda Group Holdings (at least 2 which are significant), and understanding them should be part of your investment process.
Of course, you might also be able to find a better stock than Sunfonda Group 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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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.
令一些股东恼火的是,新方达集团控股有限公司(HKG:1771)股价在过去一个月大幅下跌27%,延续了该公司可怕的涨势。对于任何长期股东来说,最后一个月以锁定股价下跌61%的方式结束了一年的忘记。
随着股价的大幅下跌,鉴于近一半的香港公司的市盈率(或“市盈率”)超过9倍,你可能会认为新方达集团控股公司的2.7倍市盈率是一项极具吸引力的投资。然而,市盈率可能相当低是有原因的,需要进一步调查才能确定它是否合理。
例如,新方达集团控股公司近期收益下滑的情况就值得深思了。一种可能性是,市盈率较低是因为投资者认为该公司在不久的将来不会采取足够的措施来避免表现逊于大盘。然而,如果这不是最终的结果,那么现有股东可能对未来股价的走势感到乐观。
查看我们对新方达集团控股的最新分析
联交所:1771基于过去收益的价格2022年10月18日尽管没有分析师对新方达集团的估计,但请看一下这一点
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。
孙方达集团控股有没有增长?
为了证明其市盈率是合理的,新方达集团控股有限公司需要实现大幅落后于市场的疲软增长。
回顾过去一年,该公司的利润令人沮丧地下降了36%。这让最近三年的情况变得糟糕,尽管如此,每股收益仍实现了9.0%的可观涨幅。尽管这是一段坎坷的旅程,但公平地说,最近该公司的收益增长基本上是值得尊敬的。
与预计未来12个月将实现20%增长的市场相比,根据最近的中期年化收益结果,该公司的增长势头较弱。
有了这些信息,我们就可以理解为什么太阳方达集团控股的市盈率低于市场。似乎大多数投资者都预计,最近有限的增长率将持续到未来,他们只愿意为该股支付较低的价格。
新方达集团控股市盈率的底线
在险些跌落悬崖之后,新方达集团控股的股价也随之下跌。仅仅用市盈率来决定你是否应该出售你的股票是不明智的,但它可以成为公司未来前景的实用指南。
正如我们怀疑的那样,我们对顺方达集团控股有限公司的调查显示,鉴于其市盈率低于当前市场预期,其三年盈利趋势是导致其市盈率较低的原因之一。目前,股东们正在接受低市盈率,因为他们承认,未来的收益可能不会带来任何令人愉快的惊喜。除非近期的中期状况有所改善,否则将继续在这些水平附近形成股价障碍。
总是有必要考虑到投资风险的幽灵无处不在。我们已经确定了SunFonda集团控股公司的4个警告信号(至少有两个是重要的),理解它们应该是你投资过程的一部分。
当然了,你或许还能找到一只比新方达集团控股更好的股票。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。