The Shuang Yun Holdings Limited (HKG:1706) share price has fared very poorly over the last month, falling by a substantial 28%. For any long-term shareholders, the last month ends a year to forget by locking in a 56% share price decline.
In spite of the heavy fall in price, it's still not a stretch to say that Shuang Yun Holdings' price-to-earnings (or "P/E") ratio of 8.6x right now seems quite "middle-of-the-road" compared to the market in Hong Kong, where the median P/E ratio is around 9x. 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.
With earnings growth that's exceedingly strong of late, Shuang Yun Holdings has been doing very well. The P/E is probably moderate because investors think this strong earnings growth might not be enough to outperform the broader market in the near future. If that doesn't eventuate, then existing shareholders have reason to be feeling optimistic about the future direction of the share price.
View our latest analysis for Shuang Yun Holdings
SEHK:1706 Price Based on Past Earnings November 16th 2022 Want the full picture on earnings, revenue and cash flow for the company? Then our
free report on Shuang Yun Holdings will help you shine a light on its historical performance.
Does Growth Match The P/E?
There's an inherent assumption that a company should be matching the market for P/E ratios like Shuang Yun Holdings' to be considered reasonable.
If we review the last year of earnings growth, the company posted a terrific increase of 115%. Still, incredibly EPS has fallen 39% in total from three years ago, which is quite disappointing. So unfortunately, we have to acknowledge that the company has not done a great job of growing earnings over that time.
Comparing that to the market, which is predicted to deliver 18% growth in the next 12 months, the company's downward momentum based on recent medium-term earnings results is a sobering picture.
With this information, we find it concerning that Shuang Yun Holdings is trading at a fairly similar P/E to the market. It seems most investors are ignoring the recent poor growth rate and are hoping for a turnaround in the company's business prospects. 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.
What We Can Learn From Shuang Yun Holdings' P/E?
With its share price falling into a hole, the P/E for Shuang Yun Holdings looks quite average now. While the price-to-earnings ratio shouldn't be the defining factor in whether you buy a stock or not, it's quite a capable barometer of earnings expectations.
We've established that Shuang Yun Holdings currently trades on a higher than expected P/E since its recent earnings have been in decline over the medium-term. When we see earnings heading backwards and underperforming the market forecasts, we suspect the share price is at risk of declining, sending the moderate P/E lower. Unless the recent medium-term conditions improve, it's challenging to accept these prices as being reasonable.
You should always think about risks. Case in point, we've spotted 4 warning signs for Shuang Yun Holdings you should be aware of, and 2 of them make us uncomfortable.
If you're unsure about the strength of Shuang Yun Holdings' business, why not explore our interactive list of stocks with solid business fundamentals for some other companies you may have missed.
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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 双运控股有限公司 (HKG: 1706) 股价在上个月表现非常糟糕,大幅下跌了28%。对于任何长期股东来说,上个月的股价下跌了56%,从而结束了令人难忘的一年。
尽管价格大幅下跌,但可以毫不费力地说,双云控股目前的市盈率(或 “市盈率”)为8.6倍,与香港市场相比,市盈率中位数约为9倍,似乎相当 “中间位置”。尽管这可能不会引起任何关注,但如果市盈率不合理,投资者可能会错过潜在的机会,或者无视迫在眉睫的失望。
由于最近的收益增长非常强劲,双运控股一直表现良好。市盈率可能温和,因为投资者认为这种强劲的收益增长可能不足以在不久的将来跑赢大盘。如果最终没有发生这种情况,那么现有股东就有理由对股价的未来走向感到乐观。
查看我们对双运控股的最新分析
SEHK: 1706 基于过去收益的价格 2022 年 11 月 16 日想要全面了解公司的收益、收入和现金流吗?然后我们的
免费的 双运控股的报告将帮助您了解其历史表现。
增长与市盈率相匹配吗?
人们固有的假设是,像双云控股这样的公司应该与市场相匹配,才能被视为合理的市盈率。
如果我们回顾一下去年的收益增长,该公司公布了115%的惊人增长。尽管如此,令人难以置信的是,每股收益总额比三年前下降了39%,这非常令人失望。因此,不幸的是,我们必须承认,在此期间,该公司在增加收益方面做得不好。
与预计未来12个月将实现18%的增长的市场相比,根据最近的中期收益业绩,该公司的下行势头令人发人深省。
有了这些信息,我们发现双云控股的市盈率与市场相当相似,这令人担忧。看来大多数投资者都忽略了最近的低增长率,并希望公司的业务前景有所好转。只有最大胆的人才会认为这些价格是可持续的,因为近期收益趋势的延续最终可能会压制股价。
我们可以从双云控股的市盈率中学到什么?
随着股价陷入困境,双云控股现在的市盈率看起来相当平均。虽然市盈率不应该是决定你是否买入股票的决定性因素,但它是衡量收益预期的相当有力的晴雨表。
我们已经确定,双云控股目前的市盈率高于预期,因为其最近的收益在中期内一直在下降。当我们看到收益回落且表现低于市场预期时,我们怀疑股价有下跌的风险,从而使适度的市盈率走低。除非最近的中期条件有所改善,否则很难接受这些价格的合理性。
你应该时刻考虑风险。一个很好的例子,我们已经发现了 双运控股有4个警告标志 你应该知道,其中 2 个让我们感到不舒服。
如果你是 不确定双云控股的业务实力,为什么不浏览我们的互动股票清单,为你可能错过的其他一些公司提供坚实的商业基本面。
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Simply Wall St 的这篇文章本质上是一般性的。 我们仅使用公正的方法根据历史数据和分析师的预测提供评论,我们的文章无意作为财务建议。 它不构成买入或卖出任何股票的建议,也没有考虑您的目标或财务状况。我们的目标是为您提供由基本面数据驱动的长期重点分析。请注意,我们的分析可能未将最新的价格敏感型公司公告或定性材料考虑在内。简而言之,华尔街对上述任何股票都没有头寸。