The Shuang Yun Holdings Limited (HKG:1706) share price has fared very poorly over the last month, falling by a substantial 28%. For any long-term shareholders, the last month ends a year to forget by locking in a 56% share price decline.
In spite of the heavy fall in price, it's still not a stretch to say that Shuang Yun Holdings' price-to-earnings (or "P/E") ratio of 8.6x right now seems quite "middle-of-the-road" compared to the market in Hong Kong, where the median P/E ratio is around 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.
With earnings growth that's exceedingly strong of late, Shuang Yun Holdings has been doing very well. The P/E is probably moderate because investors think this strong earnings growth might not be enough to outperform the broader market in the near future. If that doesn't eventuate, then existing shareholders have reason to be feeling optimistic about the future direction of the share price.
View our latest analysis for Shuang Yun Holdings
SEHK:1706 Price Based on Past Earnings November 16th 2022 Want the full picture on earnings, revenue and cash flow for the company? Then our
free report on Shuang Yun Holdings will help you shine a light on its historical performance.
Does Growth Match The P/E?
There's an inherent assumption that a company should be matching the market for P/E ratios like Shuang Yun Holdings' to be considered reasonable.
If we review the last year of earnings growth, the company posted a terrific increase of 115%. Still, incredibly EPS has fallen 39% in total from three years ago, which is quite disappointing. So unfortunately, we have to acknowledge that the company has not done a great job of growing earnings over that time.
Comparing that to the market, which is predicted to deliver 18% growth in the next 12 months, the company's downward momentum based on recent medium-term earnings results is a sobering picture.
With this information, we find it concerning that Shuang Yun Holdings is trading at a fairly similar P/E to the market. It seems most investors are ignoring the recent poor growth rate and are hoping for a turnaround in the company's business prospects. Only the boldest would assume these prices are sustainable as a continuation of recent earnings trends is likely to weigh on the share price eventually.
What We Can Learn From Shuang Yun Holdings' P/E?
With its share price falling into a hole, the P/E for Shuang Yun Holdings looks quite average now. While the price-to-earnings ratio shouldn't be the defining factor in whether you buy a stock or not, it's quite a capable barometer of earnings expectations.
We've established that Shuang Yun Holdings currently trades on a higher than expected P/E since its recent earnings have been in decline over the medium-term. When we see earnings heading backwards and underperforming the market forecasts, 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.
You should always think about risks. Case in point, we've spotted 4 warning signs for Shuang Yun Holdings you should be aware of, and 2 of them make us uncomfortable.
If you're unsure about the strength of Shuang Yun Holdings' business, why not explore our interactive list of stocks with solid business fundamentals for some other companies you may have missed.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
這個 雙運控股有限公司 (HKG: 1706) 股價在上個月表現非常糟糕,大幅下跌了28%。對於任何長期股東來說,上個月的股價下跌了56%,從而結束了令人難忘的一年。
儘管價格大幅下跌,但可以毫不費力地說,雙雲控股目前的市盈率(或 “市盈率”)爲8.6倍,與香港市場相比,市盈率中位數約爲9倍,似乎相當 “中間位置”。儘管這可能不會引起任何關注,但如果市盈率不合理,投資者可能會錯過潛在的機會,或者無視迫在眉睫的失望。
由於最近的收益增長非常強勁,雙運控股一直表現良好。市盈率可能溫和,因爲投資者認爲這種強勁的收益增長可能不足以在不久的將來跑贏大盤。如果最終沒有發生這種情況,那麼現有股東就有理由對股價的未來走向感到樂觀。
查看我們對雙運控股的最新分析
SEHK: 1706 基於過去收益的價格 2022 年 11 月 16 日想要全面了解公司的收益、收入和現金流嗎?然後我們的
免費的 雙運控股的報告將幫助您了解其歷史表現。
增長與市盈率相匹配嗎?
人們固有的假設是,像雙雲控股這樣的公司應該與市場相匹配,才能被視爲合理的市盈率。
如果我們回顧一下去年的收益增長,該公司公佈了115%的驚人增長。儘管如此,令人難以置信的是,每股收益總額比三年前下降了39%,這非常令人失望。因此,不幸的是,我們必須承認,在此期間,該公司在增加收益方面做得不好。
與預計未來12個月將實現18%的增長的市場相比,根據最近的中期收益業績,該公司的下行勢頭令人發人深省。
有了這些信息,我們發現雙雲控股的市盈率與市場相當相似,這令人擔憂。看來大多數投資者都忽略了最近的低增長率,並希望公司的業務前景有所好轉。只有最大膽的人才會認爲這些價格是可持續的,因爲近期收益趨勢的延續最終可能會壓制股價。
我們可以從雙雲控股的市盈率中學到什麼?
隨着股價陷入困境,雙雲控股現在的市盈率看起來相當平均。雖然市盈率不應該是決定你是否買入股票的決定性因素,但它是衡量收益預期的相當有力的晴雨表。
我們已經確定,雙雲控股目前的市盈率高於預期,因爲其最近的收益在中期內一直在下降。當我們看到收益回落且表現低於市場預期時,我們懷疑股價有下跌的風險,從而使適度的市盈率走低。除非最近的中期條件有所改善,否則很難接受這些價格的合理性。
你應該時刻考慮風險。一個很好的例子,我們已經發現了 雙運控股有4個警告標誌 你應該知道,其中 2 個讓我們感到不舒服。
如果你是 不確定雙雲控股的業務實力,爲什麼不瀏覽我們的互動股票清單,爲你可能錯過的其他一些公司提供堅實的商業基本面。
對這篇文章有反饋嗎?對內容感到擔憂? 取得聯繫 直接和我們聯繫。 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一般性的。 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,我們的分析可能未將最新的價格敏感型公司公告或定性材料考慮在內。簡而言之,華爾街對上述任何股票都沒有頭寸。