The Serial System Ltd (SGX:S69) share price has fared very poorly over the last month, falling by a substantial 26%. The drop over the last 30 days has capped off a tough year for shareholders, with the share price down 39% in that time.
Even after such a large drop in price, it's still not a stretch to say that Serial System's price-to-earnings (or "P/E") ratio of 8.7x right now seems quite "middle-of-the-road" compared to the market in Singapore, where the median P/E ratio is around 10x. 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.
For instance, Serial System's receding earnings in recent times would have to be some food for thought. One possibility is that the P/E is moderate because investors think the company might still do enough to be in line with the broader market in the near future. If not, then existing shareholders may be a little nervous about the viability of the share price.
View our latest analysis for Serial System
SGX:S69 Price Based on Past Earnings October 19th 2022 Want the full picture on earnings, revenue and cash flow for the company? Then our
free report on Serial System will help you shine a light on its historical performance.
What Are Growth Metrics Telling Us About The P/E?
In order to justify its P/E ratio, Serial System would need to produce growth that's similar to the market.
Retrospectively, the last year delivered a frustrating 47% decrease to the company's bottom line. This means it has also seen a slide in earnings over the longer-term as EPS is down 65% in total over the last three years. Therefore, it's fair to say the earnings growth recently has been undesirable for the company.
Comparing that to the market, which is predicted to deliver 3.8% growth in the next 12 months, the company's downward momentum based on recent medium-term earnings results is a sobering picture.
In light of this, it's somewhat alarming that Serial System's P/E sits in line with the majority of other companies. Apparently many investors in the company are way less bearish than recent times would indicate and aren't willing to let go of their stock right now. Only the boldest would assume these prices are sustainable as a continuation of recent earnings trends is likely to weigh on the share price eventually.
The Key Takeaway
With its share price falling into a hole, the P/E for Serial System looks quite average now. 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 Serial System revealed its shrinking earnings over the medium-term aren't impacting its P/E as much as we would have predicted, given the market is set to grow. Right now we are uncomfortable with the P/E as this earnings performance is unlikely to support a more positive sentiment for long. If recent medium-term earnings trends continue, it will place shareholders' investments at risk and potential investors in danger of paying an unnecessary premium.
It's always necessary to consider the ever-present spectre of investment risk. We've identified 6 warning signs with Serial System (at least 2 which don't sit too well with us), and understanding these should be part of your investment process.
If these risks are making you reconsider your opinion on Serial System, explore our interactive list of high quality stocks to get an idea of what else is out there.
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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.
这个赛博系统有限公司(新加坡证券交易所股票代码:S69)过去一个月,股价表现非常糟糕,大幅下跌了26%。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39%。
即使在经历了如此大的价格下跌之后,仍然可以毫不夸张地说,与新加坡市场相比,Serial System目前8.7倍的市盈率(或“市盈率”)似乎相当“中等”,新加坡市场的市盈率中值约为10倍。尽管这可能不会令人惊讶,但如果市盈率不合理,投资者可能会错过潜在的机会,或者忽视迫在眉睫的失望。
例如,Serial System在最近几年不断下滑的收益肯定值得深思。一种可能性是,市盈率是温和的,因为投资者认为,该公司在不久的将来可能仍会采取足够的措施,与大盘保持一致。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Serial System的最新分析
新加坡证券交易所:S69基于过去收益的价格2022年10月19日想要了解该公司的收益、收入和现金流的全貌吗?那么我们的
免费关于串口系统的报告将帮助您了解其历史表现。
增长指标告诉我们关于市盈率的哪些信息?
为了证明其市盈率是合理的,Serial System需要实现与市场类似的增长。
回顾过去一年,该公司的利润令人沮丧地下降了47%。这意味着它的长期收益也出现了下滑,因为每股收益在过去三年里总共下降了65%。因此,公平地说,最近的收益增长对公司来说是不可取的。
与预计未来12个月将实现3.8%增长的市场相比,根据最近的中期收益结果,该公司的下行势头令人警醒。
有鉴于此,Serial System的市盈率与大多数其他公司持平,这有点令人担忧。显然,该公司的许多投资者并不像最近的情况所显示的那样悲观,他们现在不愿抛售自己的股票。只有最大胆的人才会认为这些价格是可持续的,因为最近盈利趋势的延续最终可能会拖累股价。
关键的外卖
随着股价跌入低谷,Serial System的市盈率现在看起来相当平均。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Serial System的调查显示,考虑到市场将会增长,其中期收益缩水对其市盈率的影响并不像我们预期的那样大。目前,我们对市盈率感到不安,因为这种盈利表现不太可能长期支持更积极的情绪。如果近期的中期盈利趋势持续下去,将使股东的投资面临风险,潜在投资者面临支付不必要溢价的危险。
总是有必要考虑到投资风险的幽灵无处不在。我们已经用Serial系统识别了6个警告信号(至少有两个不太适合我们),了解这些应该是你投资过程的一部分。
如果这些风险让你重新考虑你对串口系统的看法,探索我们的高质量股票互动列表,以了解还有什么。
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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。