Madison Holdings Group Limited (HKG:8057) shareholders that were waiting for something to happen have been dealt a blow with a 32% share price drop in the last month. For any long-term shareholders, the last month ends a year to forget by locking in a 75% share price decline.
Although its price has dipped substantially, Madison Holdings Group's price-to-earnings (or "P/E") ratio of 23.3x might still make it look like a strong sell right now compared to the market in Hong Kong, where around half of the companies have P/E ratios below 9x and even P/E's below 5x are quite common. However, the P/E might be quite high for a reason and it requires further investigation to determine if it's justified.
For example, consider that Madison Holdings Group's financial performance has been pretty ordinary lately as earnings growth is non-existent. One possibility is that the P/E is high because investors think the benign earnings growth will improve to outperform the broader market in the near future. You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason.
Check out our latest analysis for Madison Holdings Group
SEHK:8057 Price to Earnings Ratio vs Industry June 8th 2023
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 Madison Holdings Group's earnings, revenue and cash flow.
Does Growth Match The High P/E?
There's an inherent assumption that a company should far outperform the market for P/E ratios like Madison Holdings Group's to be considered reasonable.
If we review the last year of earnings, the company posted a result that saw barely any deviation from a year ago. Likewise, not much has changed from three years ago as earnings have been stuck during that whole time. So it seems apparent to us that the company has struggled to grow earnings meaningfully over that time.
This is in contrast to the rest of the market, which is expected to grow by 25% over the next year, materially higher than the company's recent medium-term annualised growth rates.
With this information, we find it concerning that Madison Holdings Group is trading at a P/E higher than the market. It seems most investors are ignoring the fairly limited recent growth rates and are hoping for a turnaround in the company's business prospects. There's a good chance existing shareholders are setting themselves up for future disappointment if the P/E falls to levels more in line with recent growth rates.
What We Can Learn From Madison Holdings Group's P/E?
A significant share price dive has done very little to deflate Madison Holdings Group's very lofty 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.
We've established that Madison Holdings Group currently trades on a much higher than expected P/E since its recent three-year growth is lower than the wider market forecast. Right now we are increasingly uncomfortable with the high P/E as this earnings performance isn't likely to support such positive sentiment for long. If recent medium-term earnings trends continue, it will place shareholders' investments at significant risk and potential investors in danger of paying an excessive premium.
We don't want to rain on the parade too much, but we did also find 4 warning signs for Madison Holdings Group (2 shouldn't be ignored!) that you need to be mindful of.
It's important to make sure you look for a great company, not just the first idea you come across. So take a peek at this free list of interesting companies with strong recent earnings growth (and a low P/E).
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麦迪森控股(HKG:8057)的股东在等待事情发生的同时,也受到了打击,股价在上个月下跌了32%。对于任何长期股东来说,上个月的股价下跌了75%,从而结束了难以忘记的一年。
尽管其价格大幅下跌,但与香港市场相比,麦迪逊控股集团23.3倍的市盈率(或 “市盈率”)可能仍使其看起来像是强劲的抛售。在香港,大约一半的公司的市盈率低于9倍,甚至市盈率低于5倍也很常见。但是,市盈率可能相当高是有原因的,需要进一步调查以确定其是否合理。
例如,假设麦迪逊控股集团最近的财务表现相当普通,因为收益增长不存在。一种可能性是市盈率很高,因为投资者认为良性的收益增长将在不久的将来改善以超过整个市场。你真的希望如此,否则你将无缘无故地付出相当高的代价。
查看我们对麦迪逊控股集团的最新分析
SEHK: 8057 市盈率与行业比率 2023 年 6 月 8 日
我们没有分析师的预测,但你可以通过查看我们的,了解最近的趋势如何为公司的未来奠定基础 免费的 麦迪逊控股集团的收益、收入和现金流报告。
增长与高市盈率相匹配吗?
有一种固有的假设是,如果像麦迪逊控股集团这样的市盈率被认为是合理的,那么一家公司的表现应该远远超过市场。
如果我们回顾一下去年的收益,该公司公布的业绩与一年前几乎没有任何偏差。同样,与三年前相比,变化不大,因为在这段时间里,收益一直停滞不前。因此,在我们看来,很明显,在此期间,该公司一直在努力实现有意义的收益增长。
这与其他市场形成鲜明对比,后者预计明年将增长25%,大大高于该公司最近的中期年化增长率。
有了这些信息,我们发现麦迪逊控股集团的市盈率高于市场令人担忧。看来大多数投资者无视最近相当有限的增长率,并希望公司的业务前景有所好转。如果市盈率降至与最近的增长率更加一致的水平,现有股东很可能会为未来的失望做好准备。
我们可以从麦迪逊控股集团的市盈率中学到什么?
股价的大幅下跌对降低麦迪逊控股集团非常高的市盈率几乎没有起到任何作用。有人认为,市盈率是衡量某些行业价值的次要指标,但它可能是一个有力的商业情绪指标。
我们已经确定,麦迪逊控股集团目前的市盈率远高于预期,因为其最近三年的增长低于更广泛的市场预期。目前,我们对高市盈率越来越不舒服,因为这种收益表现不太可能长期支持这种积极的情绪。如果最近的中期收益趋势持续下去,将使股东的投资面临重大风险,潜在投资者有支付过高溢价的危险。
我们不想在游行队伍中下太多雨,但我们也发现了 麦迪逊控股集团的 4 个警告信号 (2 不应该被忽视!)这是你需要注意的。
重要的是 一定要寻找一家优秀的公司,而不仅仅是你遇到的第一个想法。 所以来看看这个 免费的 近期收益增长强劲(市盈率低)的有趣公司名单。
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Simply Wall St 的这篇文章本质上是笼统的。 我们仅使用公正的方法根据历史数据和分析师的预测提供评论,我们的文章无意作为财务建议。 它不构成买入或卖出任何股票的建议,也没有考虑您的目标或财务状况。我们的目标是为您提供由基本面数据驱动的长期重点分析。请注意,我们的分析可能不考虑最新的价格敏感公司公告或定性材料。简而言之,华尔街在上述任何股票中都没有头寸。