The Koda Ltd (SGX:BJZ) share price has fared very poorly over the last month, falling by a substantial 26%. For any long-term shareholders, the last month ends a year to forget by locking in a 52% share price decline.
Since its price has dipped substantially, Koda's price-to-earnings (or "P/E") ratio of 3.8x might make it look like a strong buy right now compared to the market in Singapore, where around half of the companies have P/E ratios above 11x and even P/E's above 18x are quite common. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the highly reduced P/E.
Koda could be doing better as its earnings have been going backwards lately while most other companies have been seeing positive earnings growth. It seems that many are expecting the dour earnings performance to persist, which has repressed the P/E. If you still like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's out of favour.
View our latest analysis for Koda
SGX:BJZ Price Based on Past Earnings December 5th 2022 If you'd like to see what analysts are forecasting going forward, you should check out our
free report on Koda.
What Are Growth Metrics Telling Us About The Low P/E?
There's an inherent assumption that a company should far underperform the market for P/E ratios like Koda's to be considered reasonable.
Retrospectively, the last year delivered a frustrating 38% decrease to the company's bottom line. That put a dampener on the good run it was having over the longer-term as its three-year EPS growth is still a noteworthy 5.8% in total. So we can start by confirming that the company has generally done a good job of growing earnings over that time, even though it had some hiccups along the way.
Turning to the outlook, the next year should bring plunging returns, with earnings decreasing 17% as estimated by the sole analyst watching the company. With the rest of the market predicted to shrink by 1.1%, it's a sub-optimal result.
In light of this, it's understandable that Koda's P/E sits below the majority of other companies. However, when earnings shrink rapidly the P/E often shrinks too, which could set up shareholders for future disappointment. There's potential for the P/E to fall to even lower levels if the company doesn't improve its profitability.
The Key Takeaway
Having almost fallen off a cliff, Koda's 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 Koda's analyst forecasts revealed that its even shakier outlook against the market is contributing to its low P/E. At this stage investors feel the potential for an improvement in earnings isn't great enough to justify a higher P/E ratio. However, we're still cautious about the company's ability to resist even greater pain to its business from the broader market turmoil. In the meantime, unless the company's prospects improve they will continue to form a barrier for the share price around these levels.
You should always think about risks. Case in point, we've spotted 5 warning signs for Koda you should be aware of, and 2 of them are a bit concerning.
If these risks are making you reconsider your opinion on Koda, 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.
这个科达有限公司(新加坡证券交易所股票代码:BJZ)上个月股价表现非常糟糕,大幅下跌了26%。对于任何长期股东来说,最后一个月以锁定股价下跌52%的方式结束了一年的忘记。
由于其股价大幅下跌,科达3.8倍的市盈率可能会让它现在看起来像是一个强劲的买入市场。在新加坡,大约一半的公司的市盈率超过11倍,甚至超过18倍的市盈率也很常见。尽管如此,我们还需要更深入地挖掘,以确定市盈率大幅下降是否有合理的基础。
科达可能会做得更好,因为它的收益最近一直在下降,而其他大多数公司的收益都出现了正增长。似乎许多人预计低迷的盈利表现将持续下去,这抑制了市盈率。如果你仍然喜欢这家公司,你可能会希望情况并非如此,这样你就可以在它不受青睐的时候买入一些股票。
查看我们对科达的最新分析
新加坡证券交易所:BJZ价格基于过去的收益2022年12月5日如果您想了解分析师对未来的预测,您应该查看我们的
免费关于科达的报道。
增长指标告诉我们关于低市盈率的哪些信息?
有一种固有的假设,即一家公司的表现应该远远逊于市场,而像科达这样的市盈率才被认为是合理的。
回顾过去一年,该公司的利润令人沮丧地下降了38%。这抑制了该公司的长期良好表现,因为其三年每股收益增长仍高达5.8%,值得注意。因此,我们可以从确认该公司在这段时间内总体上在收益增长方面做得很好开始,尽管在此过程中出现了一些小问题。
谈到前景,明年的回报率应该会大幅下降,据唯一关注该公司的分析师估计,收益将下降17%。鉴于其他市场预计将缩水1.1%,这是一个次优的结果。
有鉴于此,科达的市盈率低于大多数其他公司也是可以理解的。然而,当收益迅速缩水时,市盈率通常也会缩水,这可能会让股东在未来感到失望。如果该公司不提高盈利能力,市盈率有可能降至更低的水平。
关键的外卖
在几乎跌落悬崖之后,科达的股价也随之下跌。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。
正如我们所怀疑的那样,我们对科达分析师预测的审查显示,该公司对市场前景的不稳定是导致其市盈率较低的原因之一。在现阶段,投资者认为盈利改善的潜力还不够大,不足以证明更高的市盈率是合理的。然而,我们仍然对该公司是否有能力抵御更广泛的市场动荡给其业务带来的更大痛苦持谨慎态度。与此同时,除非该公司的前景有所改善,否则它们将继续构成股价在这些水平附近的障碍。
你应该时刻考虑风险。举个例子,我们发现科达的5个警告信号你应该知道,其中有两个有点令人担忧。
如果这些风险让你重新考虑你对科达的看法,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。