Progressive Path Group Holdings Limited (HKG:1581) shares have had a horrible month, losing 27% after a relatively good period beforehand. For any long-term shareholders, the last month ends a year to forget by locking in a 66% share price decline.
Even after such a large drop in price, there still wouldn't be many who think Progressive Path Group Holdings' price-to-earnings (or "P/E") ratio of 9.2x is worth a mention when the median P/E in Hong Kong is similar at about 8x. Although, it's not wise to simply ignore the P/E without explanation as investors may be disregarding a distinct opportunity or a costly mistake.
Recent times have been quite advantageous for Progressive Path Group Holdings as its earnings have been rising very briskly. It might be that many expect the strong earnings performance to wane, which has kept the P/E from rising. If that doesn't eventuate, then existing shareholders have reason to be feeling optimistic about the future direction of the share price.
See our latest analysis for Progressive Path Group Holdings
SEHK:1581 Price Based on Past Earnings October 12th 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 Progressive Path Group Holdings' earnings, revenue and cash flow.
Does Growth Match The P/E?
Progressive Path Group Holdings' P/E ratio would be typical for a company that's only expected to deliver moderate growth, and importantly, perform in line with the market.
Retrospectively, the last year delivered an exceptional 225% gain to the company's bottom line. However, the latest three year period hasn't been as great in aggregate as it didn't manage to provide any growth at all. So it appears to us that the company has had a mixed result in terms of growing earnings over that time.
Weighing that recent medium-term earnings trajectory against the broader market's one-year forecast for expansion of 20% shows it's noticeably less attractive on an annualised basis.
With this information, we find it interesting that Progressive Path Group Holdings is trading at a fairly similar P/E to the market. It seems most investors are ignoring the fairly limited recent growth rates and are willing to pay up for exposure to the stock. They may be setting themselves up for future disappointment if the P/E falls to levels more in line with recent growth rates.
The Key Takeaway
With its share price falling into a hole, the P/E for Progressive Path Group Holdings looks quite average now. 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 Progressive Path Group Holdings currently trades on a higher than expected P/E since its recent three-year growth is lower than the wider market forecast. Right now we are uncomfortable with the P/E as this earnings performance isn't likely to support a more positive sentiment for long. If recent medium-term earnings trends continue, it will place shareholders' investments at risk and potential investors in danger of paying an unnecessary premium.
Before you take the next step, you should know about the 4 warning signs for Progressive Path Group Holdings (2 are a bit unpleasant!) that we have uncovered.
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 P/E 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.
進步之路集團控股有限公司(HKG:1581)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%。對於任何長期股東來説,最後一個月以鎖定股價下跌66%的方式結束了一年的忘記。
即使股價下跌如此之大,仍然不會有很多人認為,在香港市盈率中值約為8倍的情況下,進步路徑控股9.2倍的市盈率(P/E)值得一提。儘管如此,在沒有解釋的情況下簡單地忽視市盈率是不明智的,因為投資者可能會忽視一個獨特的機會或代價高昂的錯誤。
最近對進步路徑集團控股公司來説是相當有利的,因為它的收益一直在快速增長。許多人可能預計強勁的盈利表現將會減弱,這阻止了市盈率的上升。如果不能實現這一點,那麼現有股東有理由對股價的未來走勢感到樂觀。
請參閲我們對進步路徑集團控股公司的最新分析
聯交所:1581價格基於過去收益2022年10月12日我們沒有分析師的預測,但您可以通過查看我們的
免費進步路徑集團控股的收益、收入和現金流報告。
增長是否與市盈率匹配?
對於一家預計只會實現適度增長,而且重要的是表現與市場一致的公司來説,進步路徑集團控股公司的市盈率將是典型的。
回顧過去一年,公司的利潤實現了225%的不同尋常的增長。然而,最近三年的總體表現並不是很好,因為它根本沒有實現任何增長。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。
將最近的中期收益軌跡與大盤一年增長20%的預測進行比較,結果顯示,按年率計算,它的吸引力明顯下降。
有了這些信息,我們發現有趣的是,進步路徑集團控股公司的市盈率與市場相當相似。似乎大多數投資者都忽視了最近相當有限的增長率,並願意為股票敞口支付高價。如果市盈率下降到與最近的增長率更接近的水平,他們可能會讓自己在未來感到失望。
關鍵的外賣
隨着股價跌入低谷,進步路徑集團控股公司的市盈率現在看起來相當平均。僅僅用市盈率來決定你是否應該出售你的股票是不明智的,但它可以成為公司未來前景的實用指南。
我們已經確定,進步路徑集團控股公司目前的市盈率高於預期,因為其最近三年的增長低於更廣泛的市場預測。目前,我們對市盈率感到不安,因為這種盈利表現不太可能在很長時間內支持更積極的情緒。如果近期的中期盈利趨勢持續下去,將使股東的投資面臨風險,潛在投資者面臨支付不必要溢價的危險。
在您採取下一步之前,您應該瞭解進步之路集團控股的4個警告標誌(有兩個有點令人不快!)我們已經發現了。
當然了,通過觀察幾個優秀的候選人,你可能會發現這是一項非常棒的投資。所以讓我們來看看這個免費業績表現強勁、市盈率低於20倍的公司名單。
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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。