Anxian Yuan China Holdings Limited (HKG:922) shareholders would be excited to see that the share price has had a great month, posting a 38% gain and recovering from prior weakness. But the gains over the last month weren't enough to make shareholders whole, as the share price is still down 7.0% in the last twelve months.
Although its price has surged higher, Anxian Yuan China Holdings' price-to-earnings (or "P/E") ratio of 5.8x might still make it look like a buy right now compared to the market in Hong Kong, where around half of the companies have P/E ratios above 9x 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, Anxian Yuan China Holdings' receding earnings in recent times would have to be some food for thought. It might be that many expect the disappointing earnings performance to continue or accelerate, which has repressed the P/E. 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 Anxian Yuan China Holdings
SEHK:922 Price Based on Past Earnings December 9th 2022 Want the full picture on earnings, revenue and cash flow for the company? Then our
free report on Anxian Yuan China Holdings will help you shine a light on its historical performance.
What Are Growth Metrics Telling Us About The Low P/E?
Anxian Yuan China Holdings' P/E ratio would be typical for a company that's only expected to deliver limited growth, and importantly, perform worse than the market.
If we review the last year of earnings, dishearteningly the company's profits fell to the tune of 18%. However, a few very strong years before that means that it was still able to grow EPS by an impressive 62% in total over the last three years. Although it's been a bumpy ride, it's still fair to say the earnings growth recently has been more than adequate 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 pretty similar based on recent medium-term annualised earnings results.
With this information, we find it odd that Anxian Yuan China Holdings is trading at a P/E lower than the market. It may be that most investors are not convinced the company can maintain recent growth rates.
The Bottom Line On Anxian Yuan China Holdings' P/E
Despite Anxian Yuan China Holdings' shares building up a head of steam, its P/E still lags most other companies. Typically, we'd caution against reading too much into price-to-earnings ratios when settling on investment decisions, though it can reveal plenty about what other market participants think about the company.
Our examination of Anxian Yuan China Holdings revealed its three-year earnings trends aren't contributing to its P/E as much as we would have predicted, given they look similar to current market expectations. When we see average earnings with market-like growth, we assume potential risks are what might be placing pressure on the P/E ratio. It appears some are indeed anticipating earnings instability, because the persistence of these recent medium-term conditions should normally provide more support to the share price.
Before you take the next step, you should know about the 2 warning signs for Anxian Yuan China Holdings that we have uncovered.
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 P/E ratio 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.
安縣源中國控股有限公司 (HKG: 922) 股東們會很高興看到股價表現良好,上漲了38%,並從先前的疲軟中恢復過來。但是上個月的漲幅不足以使股東們恢復健康,因爲在過去的十二個月中,股價仍下跌了7.0%。
儘管其價格飆升,但與香港市場相比,Anxian Yuan China Holdings的5.8倍市盈率(或 “市盈率”)現在可能仍像是買入。在香港,大約一半的公司的市盈率超過9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,安縣元中國控股最近收益的下降一定值得深思。可能是許多人預計令人失望的收益表現將持續或加速,這抑制了市盈率。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。
查看我們對安賢元中國控股的最新分析
SEHK: 922 基於過去財報的價格 2022 年 12 月 9 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 安縣元中國控股的報告將幫助您瞭解其歷史表現。
關於低市盈率,增長指標告訴我們甚麼?
Anxian Yuan China Holdings的市盈率對於一家預計增長有限、重要的是表現比市場差的公司來說是典型的。
如果我們回顧一下去年的收益,令人沮喪的是,該公司的利潤降至18%。但是,在此之前的幾年中表現非常強勁,這意味着在過去三年中,它仍然能夠將每股收益總額增長62%,令人印象深刻。儘管這是一個坎坷的旅程,但可以公平地說,最近的收益增長對公司來說已經足夠了。
相比之下,市場預計將在未來12個月內實現17%的增長,根據最近的中期年化收益業績,該公司的勢頭非常相似。
有了這些信息,我們覺得奇怪的是,安縣元中國控股的市盈率低於市場。可能是大多數投資者不相信該公司能夠維持最近的增長率。
安縣元中國控股市盈率的底線
儘管安縣元中國控股的股票正在蓬勃發展,但其市盈率仍落後於大多數其他公司。通常,在做出投資決策時,我們會告誡不要過多地考慮市盈率,儘管這可以充分揭示其他市場參與者對公司的看法。
我們對Anxian Yuan China Holdings的審查顯示,其三年的收益趨勢對市盈率的貢獻沒有我們預期的那麼大,因爲它們看起來與當前的市場預期相似。當我們看到平均收益與市場相似的增長時,我們假設潛在風險可能會給市盈率帶來壓力。看來有些人確實預計收益將出現不穩定,因爲最近這些中期條件的持續通常會爲股價提供更多支撐。
在你採取下一步之前,你應該知道 安鮮園中國控股有 2 個警告信號 我們已經發現了。
重要的是 一定要尋找一家優秀的公司,而不僅僅是你遇到的第一個想法。 所以來看看這個 免費的 近期收益增長強勁(市盈率低於20倍)的有趣公司名單。
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提供基於歷史數據和分析師預測的評論,我們的文章無意提供財務建議。 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。