Janus International Group, Inc.'s (NYSE:JBI) price-to-earnings (or "P/E") ratio of 14.4x might make it look like a buy right now compared to the market in the United States, where around half of the companies have P/E ratios above 18x and even P/E's above 33x are quite common. However, the P/E might be low for a reason and it requires further investigation to determine if it's justified.
With its earnings growth in positive territory compared to the declining earnings of most other companies, Janus International Group has been doing quite well of late. It might be that many expect the strong earnings performance to degrade substantially, possibly more than the market, which has repressed the P/E. If you 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.
See our latest analysis for Janus International Group
Keen to find out how analysts think Janus International Group's future stacks up against the industry? In that case, our free report is a great place to start.
Is There Any Growth For Janus International Group?
Janus International Group'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 growth, the company posted a terrific increase of 47%. However, the latest three year period hasn't been as great in aggregate as it didn't manage to provide any growth at all. Therefore, it's fair to say that earnings growth has been inconsistent recently for the company.
Turning to the outlook, the next year should generate growth of 12% as estimated by the six analysts watching the company. That's shaping up to be materially higher than the 10% growth forecast for the broader market.
In light of this, it's peculiar that Janus International Group's P/E sits below the majority of other companies. It looks like most investors are not convinced at all that the company can achieve future growth expectations.
The Bottom Line On Janus International Group's P/E
Typically, we'd caution against reading too much into price-to-earnings ratios when settling on investment decisions, though it can reveal plenty about what other market participants think about the company.
Our examination of Janus International Group's analyst forecasts revealed that its superior earnings outlook isn't contributing to its P/E anywhere near as much as we would have predicted. There could be some major unobserved threats to earnings preventing the P/E ratio from matching the positive outlook. At least price risks look to be very low, but investors seem to think future earnings could see a lot of volatility.
Having said that, be aware Janus International Group is showing 1 warning sign in our investment analysis, you should know about.
You might be able to find a better investment than Janus International Group. If you want a selection of possible candidates, check out this free list of interesting companies that trade on a low P/E (but have proven they can grow earnings).
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. 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.
Janus International Group, Inc.s(纽约证券交易所代码:JBI)市盈率(或 “市盈率”)为14.4倍,与美国市场相比,目前可能看起来像买入,美国约有一半的公司的市盈率高于18倍,甚至市盈率超过33倍也很常见。但是,市盈率之低可能是有原因的,需要进一步调查以确定其是否合理。
与大多数其他公司的收益下降相比,Janus International Group的收益增长处于正值区间,近期表现良好。许多人可能预计,强劲的盈利表现将大幅下降,可能超过抑制市盈率的市场。如果你喜欢该公司,你会希望情况并非如此,这样你就有可能在股票失宠的时候买入一些股票。