Those holding Sheung Yue Group Holdings Limited (HKG:1633) shares would be relieved that the share price has rebounded 41% in the last thirty days, but it needs to keep going to repair the recent damage it has caused to investor portfolios. But not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 20% in the last twelve months.
Although its price has surged higher, there still wouldn't be many who think Sheung Yue Group Holdings' price-to-earnings (or "P/E") ratio of 7.4x is worth a mention when the median P/E in Hong Kong is similar at about 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.
Sheung Yue Group Holdings certainly has been doing a great job lately as it's been growing earnings at a really rapid pace. 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.
Check out our latest analysis for Sheung Yue Group Holdings
SEHK:1633 Price Based on Past Earnings December 6th 2022 Want the full picture on earnings, revenue and cash flow for the company? Then our
free report on Sheung Yue Group Holdings will help you shine a light on its historical performance.
What Are Growth Metrics Telling Us About The P/E?
There's an inherent assumption that a company should be matching the market for P/E ratios like Sheung Yue Group Holdings' to be considered reasonable.
Taking a look back first, we see that the company grew earnings per share by an impressive 89% last year. Still, EPS has barely risen at all from three years ago in total, which is not ideal. So it appears to us that the company has had a mixed result in terms of growing earnings over that time.
Comparing that to the market, which is predicted to deliver 17% growth in the next 12 months, the company's momentum is weaker based on recent medium-term annualised earnings results.
With this information, we find it interesting that Sheung Yue 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 Final Word
Sheung Yue Group Holdings appears to be back in favour with a solid price jump getting its P/E back in line with most other companies. 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.
Our examination of Sheung Yue Group Holdings revealed its three-year earnings trends aren't impacting its P/E as much as we would have predicted, given they look worse than current market expectations. 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.
There are also other vital risk factors to consider and we've discovered 3 warning signs for Sheung Yue Group Holdings (2 shouldn't be ignored!) that you should be aware of before investing here.
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.
持有者恒越集团控股有限公司(HKG:1633)股价在过去30天里反弹了41%,股价会松一口气,但它需要继续努力修复最近对投资者投资组合造成的损害。但并不是所有的股东都会感到欢欣鼓舞,因为在过去的12个月里,该公司股价仍下跌了非常令人失望的20%。
尽管恒跃股价飙升,但在香港市盈率中值约为9倍的情况下,仍不会有很多人认为恒跃集团7.4倍的市盈率(P/E)值得一提。尽管这可能不会令人惊讶,但如果市盈率不合理,投资者可能会错过潜在的机会,或者忽视迫在眉睫的失望。
恒越集团最近确实做得很好,因为它一直在以非常快的速度增长收益。许多人可能预计强劲的盈利表现将会减弱,这阻止了市盈率的上升。如果不能实现这一点,那么现有股东有理由对股价的未来走势感到乐观。
请看我们对恒跃集团控股的最新分析
联交所:1633基于过去收益的价格2022年12月6日想要了解公司的收益、收入和现金流的全貌吗?那么我们的
免费关于恒跃集团控股的报道将帮助你了解其历史表现。
增长指标告诉我们关于市盈率的哪些信息?
有一个固有的假设,即一家公司的市盈率应该与市场相符,才被认为是合理的,比如恒跃集团控股的市盈率。
先回过头来看,该公司去年每股收益增长了89%,令人印象深刻。尽管如此,与三年前相比,每股收益总体上几乎没有上升,这并不理想。因此,在我们看来,在这段时间里,该公司在收益增长方面的结果好坏参半。
与预计未来12个月将实现17%增长的市场相比,根据最近的中期年化收益结果,该公司的增长势头较弱。
有了这些信息,我们发现有趣的是,恒跃集团控股的市盈率与市场相当相似。似乎大多数投资者都忽视了最近相当有限的增长率,并愿意为股票敞口支付高价。如果市盈率下降到与最近的增长率更接近的水平,他们可能会让自己在未来感到失望。
最后的结论
恒跃集团控股有限公司似乎再次受到青睐,股价大幅上涨,使其市盈率恢复到与大多数其他公司的水平。有人认为,市盈率是衡量某些行业价值的次要指标,但它可以成为一个强大的商业信心指标。
我们对恒越集团的调查显示,该公司三年的盈利趋势对其市盈率的影响并不像我们预期的那么大,因为它们看起来比目前的市场预期更糟糕。目前,我们对市盈率感到不安,因为这种盈利表现不太可能在很长时间内支持更积极的情绪。如果近期的中期盈利趋势持续下去,将使股东的投资面临风险,潜在投资者面临支付不必要溢价的危险。
还有其他重要的风险因素需要考虑,我们发现恒跃集团控股的3个警告标志(2个不应该被忽视!)在这里投资之前你应该意识到这一点。
重要的是确保你寻找的是一家伟大的公司,而不仅仅是你遇到的第一个想法。所以让我们来看看这个免费近期盈利增长强劲(市盈率低于20倍)的有趣公司名单。
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本文由Simply Wall St.撰写,具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论,我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议,也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意,我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。