Suzhou Hesheng Special Material Co., Ltd. (SZSE:002290) shares have continued their recent momentum with a 39% gain in the last month alone. The last 30 days bring the annual gain to a very sharp 35%.
Although its price has surged higher, there still wouldn't be many who think Suzhou Hesheng Special Material's price-to-earnings (or "P/E") ratio of 34.8x is worth a mention when the median P/E in China is similar at about 35x. 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 example, consider that Suzhou Hesheng Special Material's financial performance has been poor lately as it's earnings have been in decline. It might be that many expect the company to put the disappointing earnings performance behind them over the coming period, which has kept the P/E from falling. If you like the company, you'd at least be hoping this is the case so that you could potentially pick up some stock while it's not quite in favour.
Check out our latest analysis for Suzhou Hesheng Special Material
SZSE:002290 Price Based on Past Earnings July 28th 2022 Want the full picture on earnings, revenue and cash flow for the company? Then our
free report on Suzhou Hesheng Special Material will help you shine a light on its historical performance.
What Are Growth Metrics Telling Us About The P/E?
The only time you'd be comfortable seeing a P/E like Suzhou Hesheng Special Material's is when the company's growth is tracking the market closely.
Retrospectively, the last year delivered a frustrating 13% decrease to the company's bottom line. However, a few very strong years before that means that it was still able to grow EPS by an impressive 44% in total over the last three years. Accordingly, while they would have preferred to keep the run going, shareholders would probably welcome the medium-term rates of earnings growth.
Weighing that recent medium-term earnings trajectory against the broader market's one-year forecast for expansion of 37% shows it's noticeably less attractive on an annualised basis.
In light of this, it's curious that Suzhou Hesheng Special Material's P/E sits in line with the majority of other companies. It seems most investors are ignoring the fairly limited recent growth rates and are willing to pay up for exposure to the stock. Maintaining these prices will be difficult to achieve as a continuation of recent earnings trends is likely to weigh down the shares eventually.
What We Can Learn From Suzhou Hesheng Special Material's P/E?
Its shares have lifted substantially and now Suzhou Hesheng Special Material's P/E is also back up to the market median. We'd say the price-to-earnings ratio's power isn't primarily as a valuation instrument but rather to gauge current investor sentiment and future expectations.
We've established that Suzhou Hesheng Special Material currently trades on a higher than expected P/E since its recent three-year growth is lower than the wider market forecast. Right now we are uncomfortable with the P/E as this earnings performance isn't likely 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.
You always need to take note of risks, for example - Suzhou Hesheng Special Material has 1 warning sign we think you should be aware of.
If these risks are making you reconsider your opinion on Suzhou Hesheng Special Material, 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.
蘇州合盛特種材料有限公司。(SZSE:002290)僅在過去一個月,股價就延續了近期的勢頭,上漲了39%。在過去的30天裏,年度漲幅達到了非常大的35%。
儘管蘇州合生特材的價格飆升,但在中國市盈率中值約為35倍的情況下,仍不會有很多人認為蘇州合生特材34.8倍的市盈率(P/E)值得一提。儘管這可能不會令人驚訝,但如果市盈率不合理,投資者可能會錯過潛在的機會,或者忽視迫在眉睫的失望。
例如,考慮到蘇州合生特材最近的財務表現不佳,因為它的收益一直在下降。許多人可能預計,該公司在未來一段時間內將把令人失望的收益表現拋在腦後,這讓市盈率不會下降。如果你喜歡這家公司,你至少會希望情況是這樣的,這樣你就可以在它不太受歡迎的時候買入一些股票。
查看我們對蘇州合生特殊材料的最新分析
SZSE:002290基於過去收益的價格2022年7月28日想要了解公司的收益、收入和現金流的全貌嗎?那麼我們的
免費蘇州合生特材報道,助您一窺合生的歷史表現。
增長指標告訴我們關於市盈率的哪些信息?
蘇州合生特材這樣的市盈率只有在該公司的增長密切跟蹤市場的時候才會讓你感到放心。
回顧過去一年,該公司的利潤令人沮喪地下降了13%。然而,在此之前的幾年非常強勁,這意味着它仍然能夠在過去三年中實現令人印象深刻的44%的每股收益增長。因此,儘管股東們更願意繼續運營,但他們可能會歡迎中期的盈利增長率。
將最近的中期收益軌跡與大盤一年增長37%的預期進行比較,結果顯示,按年率計算,它的吸引力明顯下降。
有鑑於此,令人好奇的是,蘇州合生特材的市盈率與大多數其他公司的市盈率是一致的。似乎大多數投資者都忽視了最近相當有限的增長率,並願意為股票敞口支付高價。維持這些價格將很難實現,因為近期盈利趨勢的延續最終可能會拖累該公司股價。
蘇州合生特材市盈率對我們有何啟示?
它的股價大幅上漲,現在蘇州合生特材的市盈率也回到了市場中值。我們會説,市盈率的力量主要不是作為一種估值工具,而是衡量當前投資者的情緒和未來預期。
我們已經確定,蘇州合生特殊材料目前的市盈率高於預期,因為其最近三年的增長低於更廣泛的市場預測。目前,我們對市盈率感到不安,因為這種盈利表現不太可能在很長時間內支持更積極的情緒。如果近期的中期盈利趨勢持續下去,將使股東的投資面臨風險,潛在投資者面臨支付不必要溢價的危險。
你總是需要注意風險,例如-蘇州合生特材有1個警示標誌我們認為你應該意識到。
如果這些風險讓你重新考慮對蘇州合生特材的看法,探索我們的高質量股票互動列表,以瞭解還有什麼。
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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。