Ho Bee Land Limited's (SGX:H13) price-to-earnings (or "P/E") ratio of 8.1x might make it look like a buy right now compared to the market in Singapore, where around half of the companies have P/E ratios above 12x and even P/E's above 19x are quite common. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the reduced P/E.
For instance, Ho Bee Land's receding earnings in recent times would have to be some food for thought. 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. If you like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's out of favour.
See our latest analysis for Ho Bee Land
SGX:H13 Price to Earnings Ratio vs Industry May 15th 2023
Want the full picture on earnings, revenue and cash flow for the company? Then our free report on Ho Bee Land will help you shine a light on its historical performance.
Does Growth Match The Low P/E?
Ho Bee Land's P/E ratio would be typical for a company that's only expected to deliver limited growth, and importantly, perform worse than 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 50%. This means it has also seen a slide in earnings over the longer-term as EPS is down 50% in total over the last three years. Therefore, it's fair to say the earnings growth recently has been undesirable for the company.
In contrast to the company, the rest of the market is expected to grow by 3.7% over the next year, which really puts the company's recent medium-term earnings decline into perspective.
With this information, we are not surprised that Ho Bee Land is trading at a P/E lower than the market. Nonetheless, there's no guarantee the P/E has reached a floor yet with earnings going in reverse. Even just maintaining these prices could be difficult to achieve as recent earnings trends are already weighing down the shares.
The Bottom Line On Ho Bee Land's P/E
Using the price-to-earnings ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects.
We've established that Ho Bee Land maintains its low P/E on the weakness of its sliding earnings over the medium-term, as expected. At this stage investors feel the potential for an improvement in earnings isn't great enough to justify a higher P/E ratio. Unless the recent medium-term conditions improve, they will continue to form a barrier for the share price around these levels.
We don't want to rain on the parade too much, but we did also find 4 warning signs for Ho Bee Land (1 is a bit unpleasant!) that you need to be mindful of.
Of course, you might find a fantastic investment by looking at a few good candidates. So take a peek at this free list of companies with a strong growth track record, trading on a low P/E.
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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.
Ho Bee Land Land (SGX: H13) 8.1倍的市盈率(或 “市盈率”)與新加坡市場相比,現在可能看起來像是買入。在新加坡,大約有一半的公司的市盈率超過12倍,甚至市盈率超過19倍也很常見。儘管如此,我們需要更深入地挖掘以確定降低市盈率是否有合理的基礎。
例如,Ho Bee Land最近收入的下降一定值得深思。一種可能性是市盈率很低,因爲投資者認爲該公司在避免在不久的將來表現不佳方面做得還不夠。如果你喜歡這家公司,你會希望情況並非如此,這樣你就有可能在股票失寵的時候買入一些股票。
查看我們對 Ho Bee Land 的最新分析
新加坡交易所:H13 市盈率與行業比率 2023 年 5 月 15 日
想全面瞭解公司的收益、收入和現金流嗎?然後我們的 免費的 關於 Ho Bee Land 的報道將幫助您瞭解其歷史表現。
增長與低市盈率相匹配嗎?
Ho Bee Land的市盈率對於一家預計只會實現有限增長、重要的是表現比市場差的公司來說是典型的。
首先回顧一下,該公司去年的每股收益增長並不令人興奮,因爲該公司公佈了令人失望的50%的下降。這意味着從長遠來看,它的收益也有所下滑,因爲在過去三年中,每股收益總額下降了50%。因此,可以公平地說,最近的收益增長對公司來說是不可取的。
與該公司形成鮮明對比的是,預計明年其他市場將增長3.7%,這確實使該公司最近的中期收益下降成爲現實。
有了這些信息,Ho Bee Land的市盈率低於市場也就不足爲奇了。儘管如此,還不能保證市盈率已達到最低水平,收益將出現逆轉。即使僅維持這些價格也可能很難實現,因爲最近的收益趨勢已經壓低了股票。
Ho Bee Land 市盈率的底線
僅使用市盈率來確定是否應該出售股票是不明智的,但它可以作爲公司未來前景的實用指南。
我們已經確定,正如預期的那樣,由於中期收益下滑,Ho Bee Land保持了低市盈率。在現階段,投資者認爲收益改善的可能性不足以證明提高市盈率是合理的。除非最近的中期條件有所改善,否則它們將繼續構成股價在這些水平附近的障礙。
我們不想在遊行隊伍中下太多雨,但我們也發現了 Ho Bee Land 的 4 個警告信號 (1 有點不愉快!)這是你需要注意的。
當然, 通過尋找一些優秀的候選人,你可能會發現一筆不錯的投資。 所以來看看這個 免費的 具有強勁增長記錄、市盈率較低的公司名單。
對這篇文章有反饋嗎?擔心內容嗎? 請直接聯繫我們。 或者,給編輯團隊 (at) simplywallst.com 發送電子郵件。
Simply Wall St 的這篇文章本質上是籠統的。 我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。 它不構成買入或賣出任何股票的建議,也沒有考慮您的目標或財務狀況。我們的目標是爲您提供由基本面數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感公司公告或定性材料。簡而言之,華爾街在上述任何股票中都沒有頭寸。