The Serial System Ltd (SGX:S69) share price has fared very poorly over the last month, falling by a substantial 26%. The drop over the last 30 days has capped off a tough year for shareholders, with the share price down 39% in that time.
Even after such a large drop in price, it's still not a stretch to say that Serial System's price-to-earnings (or "P/E") ratio of 8.7x right now seems quite "middle-of-the-road" compared to the market in Singapore, where the median P/E ratio is around 10x. 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 instance, Serial System's receding earnings in recent times would have to be some food for thought. One possibility is that the P/E is moderate because investors think the company might still do enough to be in line with the broader market in the near future. If not, then existing shareholders may be a little nervous about the viability of the share price.
View our latest analysis for Serial System
SGX:S69 Price Based on Past Earnings October 19th 2022 Want the full picture on earnings, revenue and cash flow for the company? Then our
free report on Serial System will help you shine a light on its historical performance.
What Are Growth Metrics Telling Us About The P/E?
In order to justify its P/E ratio, Serial System would need to produce growth that's similar to the market.
Retrospectively, the last year delivered a frustrating 47% decrease to the company's bottom line. This means it has also seen a slide in earnings over the longer-term as EPS is down 65% in total over the last three years. Therefore, it's fair to say the earnings growth recently has been undesirable for the company.
Comparing that to the market, which is predicted to deliver 3.8% growth in the next 12 months, the company's downward momentum based on recent medium-term earnings results is a sobering picture.
In light of this, it's somewhat alarming that Serial System's P/E sits in line with the majority of other companies. Apparently many investors in the company are way less bearish than recent times would indicate and aren't willing to let go of their stock right now. 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.
The Key Takeaway
With its share price falling into a hole, the P/E for Serial System looks quite average now. It's argued the price-to-earnings ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator.
Our examination of Serial System revealed its shrinking earnings over the medium-term aren't impacting its P/E as much as we would have predicted, given the market is set to grow. Right now we are uncomfortable with the P/E as this earnings performance is unlikely 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.
It's always necessary to consider the ever-present spectre of investment risk. We've identified 6 warning signs with Serial System (at least 2 which don't sit too well with us), and understanding these should be part of your investment process.
If these risks are making you reconsider your opinion on Serial System, explore our interactive list of high quality stocks to get an idea of what else is out there.
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.
這個賽博系統有限公司(新加坡證券交易所股票代碼:S69)過去一個月,股價表現非常糟糕,大幅下跌了26%。過去30天的下跌為股東們艱難的一年畫上了句號,股價在此期間下跌了39%。
即使在經歷瞭如此大的價格下跌之後,仍然可以毫不誇張地説,與新加坡市場相比,Serial System目前8.7倍的市盈率(或“市盈率”)似乎相當“中等”,新加坡市場的市盈率中值約為10倍。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,Serial System在最近幾年不斷下滑的收益肯定值得深思。一種可能性是,市盈率是温和的,因為投資者認為,該公司在不久的將來可能仍會採取足夠的措施,與大盤保持一致。如果不是,那麼現有股東可能會對股價的生存能力感到有點緊張。
查看我們對Serial System的最新分析
新加坡證券交易所:S69基於過去收益的價格2022年10月19日想要了解該公司的收益、收入和現金流的全貌嗎?那麼我們的
免費關於串口系統的報告將幫助您瞭解其歷史表現。
增長指標告訴我們關於市盈率的哪些信息?
為了證明其市盈率是合理的,Serial System需要實現與市場類似的增長。
回顧過去一年,該公司的利潤令人沮喪地下降了47%。這意味着它的長期收益也出現了下滑,因為每股收益在過去三年裏總共下降了65%。因此,公平地説,最近的收益增長對公司來説是不可取的。
與預計未來12個月將實現3.8%增長的市場相比,根據最近的中期收益結果,該公司的下行勢頭令人警醒。
有鑑於此,Serial System的市盈率與大多數其他公司持平,這有點令人擔憂。顯然,該公司的許多投資者並不像最近的情況所顯示的那樣悲觀,他們現在不願拋售自己的股票。只有最大膽的人才會認為這些價格是可持續的,因為最近盈利趨勢的延續最終可能會拖累股價。
關鍵的外賣
隨着股價跌入低谷,Serial System的市盈率現在看起來相當平均。有人認為,市盈率是衡量某些行業價值的次要指標,但它可以成為一個強大的商業信心指標。
我們對Serial System的調查顯示,考慮到市場將會增長,其中期收益縮水對其市盈率的影響並不像我們預期的那樣大。目前,我們對市盈率感到不安,因為這種盈利表現不太可能長期支持更積極的情緒。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。
總是有必要考慮到投資風險的幽靈無處不在。我們已經用Serial系統識別了6個警告信號(至少有兩個不太適合我們),瞭解這些應該是你投資過程的一部分。
如果這些風險讓你重新考慮你對串口系統的看法,探索我們的高質量股票互動列表,以瞭解還有什麼。
對這篇文章有什麼反饋嗎?擔心內容嗎? 保持聯繫直接與我們聯繫。或者,也可以給編輯組發電子郵件,地址是implywallst.com。
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。