Unfortunately for some shareholders, the Contel Technology Company Limited (HKG:1912) share price has dived 29% in the last thirty days, prolonging recent pain. The recent drop completes a disastrous twelve months for shareholders, who are sitting on a 64% loss during that time.
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 Contel Technology as an attractive investment with its 4.3x P/E ratio. Although, it's not wise to just take the P/E at face value as there may be an explanation why it's limited.
For instance, Contel Technology's receding earnings in recent times would have to be some food for thought. It might be that many expect the disappointing earnings performance to continue or accelerate, which has repressed the P/E. However, if this doesn't eventuate then existing shareholders may be feeling optimistic about the future direction of the share price.
View our latest analysis for Contel Technology
SEHK:1912 Price Based on Past Earnings November 4th 2022 Although there are no analyst estimates available for Contel Technology, 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 Low P/E?
Contel Technology's P/E ratio would be typical for a company that's only expected to deliver limited growth, and importantly, perform worse than the market.
If we review the last year of earnings, dishearteningly the company's profits fell to the tune of 7.2%. The last three years don't look nice either as the company has shrunk EPS by 49% in aggregate. So unfortunately, we have to acknowledge that the company has not done a great job of growing earnings over that time.
In contrast to the company, the rest of the market is expected to grow by 18% over the next year, which really puts the company's recent medium-term earnings decline into perspective.
With this information, we are not surprised that Contel Technology is trading at a P/E lower than the market. However, we think shrinking earnings are unlikely to lead to a stable P/E over the longer term, which could set up shareholders for future disappointment. Even just maintaining these prices could be difficult to achieve as recent earnings trends are already weighing down the shares.
What We Can Learn From Contel Technology's P/E?
Contel Technology's P/E has taken a tumble along with its share price. 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 Contel Technology maintains its low P/E on the weakness of its sliding earnings over the medium-term, as expected. 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.
Before you take the next step, you should know about the 2 warning signs for Contel Technology that we have uncovered.
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 P/E below 20x.
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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.
不幸的是,對於一些股東來説,康達科技有限公司(HKG:1912)股價在過去30天裏暴跌29%,延續了最近的痛苦。最近的下跌為股東們災難性的12個月畫上了句號,在此期間,他們坐擁64%的損失。
隨着股價的大幅下跌,鑑於近一半的香港公司的市盈率(或“市盈率”)超過9倍,你可能會認為康泰科技的4.3倍市盈率是一項有吸引力的投資。儘管如此,僅僅以面值來看待市盈率是不明智的,因為可能會有一個解釋為什麼它是有限的。
例如,康泰爾技術公司最近不斷下滑的收益肯定值得深思。許多人可能預計令人失望的盈利表現將繼續或加速,這抑制了市盈率。然而,如果這不是最終的結果,那麼現有股東可能對未來股價的走勢感到樂觀。
查看我們對康泰爾技術的最新分析
聯交所:1912基於過去收益的價格2022年11月4日雖然沒有分析師對Contel Technology的估計,但請看一下這一點
免費豐富的數據可視化,看看公司的收益、收入和現金流是如何堆積的。
增長是否與低市盈率相匹配?
對於一家預計只會帶來有限增長,更重要的是表現遜於市場的公司來説,康泰爾科技的市盈率是典型的。
如果我們回顧一下去年的收益,令人沮喪的是,該公司的利潤下降了7.2%。過去三年的情況也不妙,該公司每股收益總計縮水了49%。因此,不幸的是,我們不得不承認,在這段時間裏,該公司在盈利增長方面做得並不出色。
與該公司形成鮮明對比的是,其他市場在未來一年預計將增長18%,這確實讓人對該公司最近中期收益的下降有了正確的認識。
有了這些信息,我們對Contel Technology的市盈率低於市場並不感到驚訝。然而,我們認為,盈利縮水不太可能帶來長期穩定的市盈率,這可能會讓股東們未來感到失望。即使只是維持這樣的價格也可能很難實現,因為最近的收益趨勢已經在拖累股價。
我們可以從康泰爾科技的市盈率中學到什麼?
康泰爾科技的市盈率隨着其股價的下跌而暴跌。僅僅用市盈率來決定你是否應該出售你的股票是不明智的,但它可以成為公司未來前景的實用指南。
我們已經確定,康泰爾技術公司在中期盈利下滑的疲軟情況下,如預期的那樣,維持了低市盈率。目前,股東們正在接受低市盈率,因為他們承認,未來的收益可能不會帶來任何令人愉快的驚喜。除非近期的中期狀況有所改善,否則將繼續在這些水平附近形成股價障礙。
在您採取下一步之前,您應該瞭解康泰爾科技的2個警告標誌我們已經發現了。
當然了,通過觀察幾個優秀的候選人,你可能會發現這是一項非常棒的投資。所以讓我們來看看這個免費業績表現強勁、市盈率低於20倍的公司名單。
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本文由Simply Wall St.撰寫,具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論,我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議,也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意,我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。