Mobicon Group Limited (HKG:1213) shares have had a horrible month, losing 27% after a relatively good period beforehand. The drop over the last 30 days has capped off a tough year for shareholders, with the share price down 21% in that time.
Even after such a large drop in price, you could still be forgiven for feeling indifferent about Mobicon Group's P/E ratio of 8.5x, since the median price-to-earnings (or "P/E") ratio in Hong Kong is also close to 9x. 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.
As an illustration, earnings have deteriorated at Mobicon Group over the last year, which is not ideal at all. 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.
Check out our latest analysis for Mobicon Group
SEHK:1213 Price Based on Past Earnings December 22nd 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 Mobicon Group's earnings, revenue and cash flow.
How Is Mobicon Group's Growth Trending?
In order to justify its P/E ratio, Mobicon Group would need to produce growth that's similar to the market.
Taking a look back first, the company's earnings per share growth last year wasn't something to get excited about as it posted a disappointing decline of 30%. At least EPS has managed not to go completely backwards from three years ago in aggregate, thanks to the earlier period of growth. Therefore, it's fair to say that earnings growth has been inconsistent recently for the company.
Comparing that to the market, which is predicted to deliver 17% growth in the next 12 months, the company's momentum is weaker based on recent medium-term annualised earnings results.
In light of this, it's curious that Mobicon Group's P/E sits in line with the majority of other companies. Apparently many investors in the company are less bearish than recent times would indicate and aren't willing to let go of their stock right now. Maintaining these prices will be difficult to achieve as a continuation of recent earnings trends is likely to weigh down the shares eventually.
The Key Takeaway
Following Mobicon Group's share price tumble, its P/E is now hanging on to the median market P/E. 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.
Our examination of Mobicon Group revealed its three-year earnings trends aren't impacting its P/E as much as we would have predicted, given they look worse than current market expectations. When we see weak earnings with slower than market growth, we suspect the share price is at risk of declining, sending the moderate P/E lower. Unless the recent medium-term conditions improve, it's challenging to accept these prices as being reasonable.
It's always necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Mobicon Group (at least 1 which can't be ignored), and understanding them should be part of your investment process.
If P/E ratios interest you, you may wish to see this free collection of other companies that have grown earnings strongly and trade on P/E's below 20x.
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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.
美康集團有限公司(HKG:1213)股價經歷了可怕的一個月,在經歷了一段相對較好的時期後下跌了27%。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21%。
即使在股價下跌如此之大之後,你對美光集團8.5倍的本益比漠不關心也是情有可原的,因為香港的本益比中值也接近9倍。儘管這可能不會令人驚訝,但如果本益比不合理,投資者可能會錯過潛在的機會,或者忽視迫在眉睫的失望。
舉個例子,美光集團的收益在過去一年裡一直在惡化,這一點都不理想。一種可能性是,本益比是溫和的,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Mobicon Group的最新分析
聯交所:1213價格基於過去的收益2022年12月22日我們沒有分析師的預測,但您可以通過查看我們的
免費報告美康集團的收益、收入和現金流。
美康集團的增長趨勢如何?
為了證明其本益比是合理的,美康集團需要實現與市場類似的增長。
首先回顧一下,該公司去年的每股收益增長並不是什麼令人興奮的事情,因為它公佈了令人失望的下降30%。至少,由於早期的增長,每股收益總體上沒有從三年前完全倒退。因此,公平地說,該公司最近的收益增長一直不一致。
與預計未來12個月將實現17%增長的市場相比,根據最近的中期年化收益結果,該公司的增長勢頭較弱。
有鑒於此,令人好奇的是,美康集團的本益比與大多數其他公司的本益比保持一致。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。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。
關鍵的外賣
在美康集團股價暴跌後,其本益比目前保持在市場本益比的中值。我們想說的是,本益比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。
我們對美光集團的調查顯示,該公司三年盈利趨勢對本益比的影響並不像我們預期的那麼大,因為它們看起來比目前的市場預期更糟糕。當我們看到盈利疲軟、增長慢於市場增長時,我們懷疑股價有下跌的風險,導致溫和的本益比下降。除非最近的中期狀況有所改善,否則很難接受這些價格是合理的。
總是有必要考慮到投資風險的幽靈無處不在。我們已經確定了兩個與莫耳康集團有關的警告信號(至少有一個不能忽視),理解它們應該是你投資過程的一部分。
如果你對本益比感興趣,你可能想看看這個免費其他盈利增長強勁、本益比低於20倍的公司。
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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。