Those holding AV Concept Holdings Limited (HKG:595) shares would be relieved that the share price has rebounded 26% in the last thirty days, but it needs to keep going to repair the recent damage it has caused to investor portfolios. But not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 11% in the last twelve months.
Even after such a large jump in price, AV Concept Holdings' price-to-earnings (or "P/E") ratio of 2x might still make it look like a strong buy right now compared to the market in Hong Kong, where around half of the companies have P/E ratios above 8x and even P/E's above 18x are quite common. Although, it's not wise to just take the P/E at face value as there may be an explanation why it's so limited.
For example, consider that AV Concept Holdings' financial performance has been poor lately as it's earnings have been in decline. One possibility is that the P/E is low because investors think the company won't do enough to avoid underperforming the broader market in the near future. However, if this doesn't eventuate then existing shareholders may be feeling optimistic about the future direction of the share price.
See our latest analysis for AV Concept Holdings
SEHK:595 Price Based on Past Earnings October 30th 2022 We don't have analyst forecasts, but you can see how recent
trends are setting up the company for the future by checking out our
free report on AV Concept Holdings' earnings, revenue and cash flow.
Is There Any Growth For AV Concept Holdings?
In order to justify its P/E ratio, AV Concept Holdings would need to produce anemic growth that's substantially trailing the market.
Retrospectively, the last year delivered a frustrating 14% 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 304% in total over the last three years. So we can start by confirming that the company has generally done a very good job of growing earnings over that time, even though it had some hiccups along the way.
Weighing that recent medium-term earnings trajectory against the broader market's one-year forecast for expansion of 19% shows it's noticeably more attractive on an annualised basis.
With this information, we find it odd that AV Concept Holdings is trading at a P/E lower than the market. Apparently some shareholders believe the recent performance has exceeded its limits and have been accepting significantly lower selling prices.
What We Can Learn From AV Concept Holdings' P/E?
Shares in AV Concept Holdings are going to need a lot more upward momentum to get the company's P/E out of its slump. 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 AV Concept Holdings revealed its three-year earnings trends aren't contributing to its P/E anywhere near as much as we would have predicted, given they look better than current market expectations. When we see strong earnings with faster-than-market growth, we assume potential risks are what might be placing significant pressure on the P/E ratio. It appears many are indeed anticipating earnings instability, because the persistence of these recent medium-term conditions would normally provide a boost to the share price.
You always need to take note of risks, for example - AV Concept Holdings has 2 warning signs we think you should be aware of.
You might be able to find a better investment than AV Concept Holdings. If you want a selection of possible candidates, check out this free list of interesting companies that trade on a P/E below 20x (but have proven they can grow earnings).
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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.
持有者影音概念控股有限公司(HKG:595)股價在過去30天裏反彈了26%,股價會鬆一口氣,但它需要繼續努力修復最近對投資者投資組合造成的損害。但並不是所有的股東都會感到歡欣鼓舞,因為在過去的12個月裏,該公司的股價仍下跌了令人失望的11%。
即使在股價如此大幅上漲之後,AV Concept Holdings 2倍的市盈率仍可能使其與香港股市相比看起來是一個強勁的買入。在香港,大約一半的公司的市盈率高於8倍,甚至市盈率高於18倍的情況也很常見。儘管如此,僅僅從面值來看待市盈率是不明智的,因為可能會有一個解釋,為什麼它如此有限。
例如,考慮到AV Concept Holdings最近的財務表現一直不佳,因為它的收益一直在下降。一種可能性是,市盈率較低是因為投資者認為該公司在不久的將來不會採取足夠的措施來避免表現遜於大盤。然而,如果這不是最終的結果,那麼現有股東可能對未來股價的走勢感到樂觀。
查看我們對AV Concept Holdings的最新分析
聯交所:595價格基於過去收益2022年10月30日我們沒有分析師的預測,但您可以通過查看我們的
免費報告AV Concept Holdings的收益、收入和現金流。
AV Concept Holdings有增長嗎?
為了證明其市盈率是合理的,AV Concept Holdings需要實現遠遠落後於市場的疲軟增長。
回顧過去一年,該公司的利潤令人沮喪地下降了14%。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以令人印象深刻的304%的每股收益增長。因此,我們可以從確認該公司在這段時間內總體上在收益增長方面做得非常好開始,儘管在此過程中出現了一些小問題。
將最近的中期收益軌跡與大盤一年增長19%的預測進行比較,結果顯示,按年率計算,這一數字明顯更具吸引力。
有了這些信息,我們發現AV Concept Holdings的市盈率低於大盤,這很奇怪。顯然,一些股東認為,最近的表現已經超出了極限,他們一直在接受明顯較低的售價。
我們能從AV Concept Holdings的市盈率中學到什麼?
AV Concept Holdings的股價需要更多的上漲動力,才能讓公司的市盈率走出低迷。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AV Concept Holdings的調查顯示,該公司三年的盈利趨勢對市盈率的貢獻並不像我們預期的那麼大,因為它們看起來好於當前的市場預期。當我們看到強勁的收益和快於市場的增長時,我們認為潛在的風險可能會給市盈率帶來重大壓力。似乎許多人確實預計到了盈利不穩定,因為近期這些中期狀況的持續通常會提振股價。
你總是需要注意風險,例如-AV Concept Holdings有兩個警告標誌我們認為你應該意識到。
你也許能找到比AV Concept Holdings更好的投資。如果您想要選擇可能的候選人,請查看以下內容免費令人感興趣的市盈率低於20倍的公司名單(但已證明它們可以增加收益)。
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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。