With a price-to-earnings (or "P/E") ratio of 7.2x Hutchison Port Holdings Trust (SGX:NS8U) may be sending bullish signals at the moment, given that almost half of all companies in Singapore have P/E ratios greater than 11x and even P/E's higher than 18x are not unusual. However, the P/E might be low for a reason and it requires further investigation to determine if it's justified.
Hutchison Port Holdings Trust certainly has been doing a good job lately as it's been growing earnings more than most other companies. One possibility is that the P/E is low because investors think this strong earnings performance might be less impressive moving forward. If not, then existing shareholders have reason to be quite optimistic about the future direction of the share price.
View our latest analysis for Hutchison Port Holdings Trust
SGX:NS8U Price Based on Past Earnings November 23rd 2022 Want the full picture on analyst estimates for the company? Then our
free report on Hutchison Port Holdings Trust will help you uncover what's on the horizon.
How Is Hutchison Port Holdings Trust's Growth Trending?
There's an inherent assumption that a company should underperform the market for P/E ratios like Hutchison Port Holdings Trust's to be considered reasonable.
If we review the last year of earnings growth, the company posted a terrific increase of 22%. Still, EPS has barely risen at all from three years ago in total, which is not ideal. So it appears to us that the company has had a mixed result in terms of growing earnings over that time.
Looking ahead now, EPS is anticipated to slump, contracting by 7.4% per year during the coming three years according to the three analysts following the company. Meanwhile, the broader market is forecast to expand by 1.9% per year, which paints a poor picture.
In light of this, it's understandable that Hutchison Port Holdings Trust's P/E would sit below the majority of other companies. Nonetheless, there's no guarantee the P/E has reached a floor yet with earnings going in reverse. There's potential for the P/E to fall to even lower levels if the company doesn't improve its profitability.
The Bottom Line On Hutchison Port Holdings Trust's P/E
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.
As we suspected, our examination of Hutchison Port Holdings Trust's analyst forecasts revealed that its outlook for shrinking earnings 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. It's hard to see the share price rising strongly in the near future under these circumstances.
You should always think about risks. Case in point, we've spotted 2 warning signs for Hutchison Port Holdings Trust you should be aware of, and 1 of them can't be ignored.
You might be able to find a better investment than Hutchison Port Holdings Trust. 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.
市盈率(P/E)為7.2倍和記港口控股信託基金新加坡證券交易所(SGX:NS8U)目前可能發出看漲信號,因為新加坡幾乎一半的公司市盈率高於11倍,甚至高於18倍的市盈率也並不罕見。然而,市盈率可能是有原因的,需要進一步調查才能確定它是否合理。
和記黃埔港口控股信託最近肯定做得很好,因為它的收益增長速度超過了大多數其他公司。一種可能性是,市盈率較低,因為投資者認為,未來這種強勁的盈利表現可能不會那麼令人印象深刻。如果不是,那麼現有股東有理由對股價的未來走向相當樂觀。
查看我們對和記港口控股信託的最新分析
新交所:NS8U基於過去收益的價格2022年11月23日想要了解分析師對該公司預期的全貌嗎?那麼我們的
免費和記黃埔港口控股信託基金的報告將幫助你發現即將發生的事情。
和記黃埔港口控股信託的增長趨勢如何?
有一種固有的假設,即一家公司的市盈率應該低於市場,因為像和記黃埔這樣的市盈率被認為是合理的。
如果我們回顧一下去年的收益增長,該公司公佈了22%的驚人增長。儘管如此,與三年前相比,每股收益總體上幾乎沒有上升,這並不理想。因此,在我們看來,在這段時間裏,該公司在收益增長方面的結果好壞參半。
根據跟蹤該公司的三位分析師的説法,展望未來,每股收益預計將大幅下滑,未來三年每年收縮7.4%。與此同時,更廣泛的市場預計將以每年1.9%的速度增長,這描繪了一幅糟糕的圖景。
有鑑於此,和記黃埔港口控股信託的市盈率低於大多數其他公司也是可以理解的。儘管如此,不能保證市盈率已經觸底,盈利出現了逆轉。如果該公司不提高盈利能力,市盈率有可能降至更低的水平。
和記港口控股信託的市盈率底線
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。
正如我們懷疑的那樣,我們對和記黃埔的分析師預測進行了審查,發現該公司盈利縮水的前景是導致其市盈率較低的原因之一。在現階段,投資者認為盈利改善的潛力還不夠大,不足以證明更高的市盈率是合理的。在這種情況下,很難看到股價在不久的將來強勁上漲。
你應該時刻考慮風險。舉個例子,我們發現和記黃埔港口控股信託基金的2個警告信號你應該意識到,其中有1個是不容忽視的。
你或許能找到比和記港口控股信託基金更好的投資。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。