Those holding Honliv Healthcare Management Group Company Limited (HKG:9906) shares would be relieved that the share price has rebounded 25% in the last thirty days, but it needs to keep going to repair the recent damage it has caused to investor portfolios. Unfortunately, the gains of the last month did little to right the losses of the last year with the stock still down 16% over that time.
After such a large jump in price, Honliv Healthcare Management Group may be sending very bearish signals at the moment with a price-to-earnings (or "P/E") ratio of 23.9x, since almost half of all companies in Hong Kong have P/E ratios under 8x and even P/E's lower than 4x are not unusual. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the highly elevated P/E.
Recent times have been quite advantageous for Honliv Healthcare Management Group as its earnings have been rising very briskly. It seems that many are expecting the strong earnings performance to beat most other companies over the coming period, which has increased investors' willingness to pay up for the stock. If not, then existing shareholders might be a little nervous about the viability of the share price.
Check out our latest analysis for Honliv Healthcare Management Group
SEHK:9906 Price Based on Past Earnings August 8th 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 Honliv Healthcare Management Group's earnings, revenue and cash flow.
What Are Growth Metrics Telling Us About The High P/E?
The only time you'd be truly comfortable seeing a P/E as steep as Honliv Healthcare Management Group's is when the company's growth is on track to outshine the market decidedly.
Retrospectively, the last year delivered an exceptional 45% gain to the company's bottom line. However, this wasn't enough as the latest three year period has seen a very unpleasant 63% drop in EPS in aggregate. 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 15% 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 Honliv Healthcare Management Group is trading at a P/E higher than 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 heavily on the share price eventually.
The Key Takeaway
Shares in Honliv Healthcare Management Group have built up some good momentum lately, which has really inflated its P/E. 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 Honliv Healthcare Management Group currently trades on a much 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 high P/E lower. 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.
Don't forget that there may be other risks. For instance, we've identified 1 warning sign for Honliv Healthcare Management Group that you should be aware of.
Of course, you might also be able to find a better stock than Honliv Healthcare Management Group. So you may wish to see this free collection of other companies that sit on P/E's below 20x and have grown earnings strongly.
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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.
持有者洪利夫医疗管理集团有限公司(HKG:9906)股价在过去30天里反弹了25%,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。不幸的是,上个月的收益几乎没有弥补去年的损失,该股在此期间仍下跌了16%。
在股价大幅上涨后,Honliv Healthcare Management Group目前可能发出了非常看跌的信号,市盈率(P/E)为23.9倍,因为香港近一半的公司的市盈率低于8倍,即使市盈率低于4倍也并不罕见。尽管如此,我们还需要更深入地挖掘,以确定市盈率大幅上升是否有合理的基础。
最近对Honliv Healthcare Management Group来说相当有利,因为它的收益一直在快速增长。似乎很多人都预计,苹果强劲的盈利表现将在未来一段时间内超过大多数其他公司,这增加了投资者买入该股的意愿。如果不是,那么现有股东可能会对股价的生存能力感到有点紧张。
查看我们对Honliv Healthcare Management Group的最新分析
联交所:9906基于过去收益的价格2022年8月8日我们没有分析师的预测,但您可以通过查看我们的
免费Honliv Healthcare Management Group的收益、收入和现金流报告。
增长指标告诉我们关于高市盈率的哪些信息?
唯一让你真正放心看到像Honliv Healthcare Management Group这样高的市盈率的时候,就是当该公司的增长走上了明显超过市场的轨道时。
回顾过去一年,公司的利润实现了45%的不同寻常的增长。然而,这还不够,因为在最近三年的时间里,每股收益总计下降了63%,令人非常不快。因此,不幸的是,我们不得不承认,在这段时间里,该公司在盈利增长方面做得并不出色。
与预计未来12个月将实现15%增长的市场相比,根据最近的中期收益结果,该公司的下行势头令人警醒。
有了这些信息,我们发现关于Honliv Healthcare Management Group的市盈率高于市场。似乎大多数投资者都忽视了最近糟糕的增长率,并希望该公司的业务前景有所好转。只有最大胆的人才会认为这些价格是可持续的,因为最近盈利趋势的延续最终可能会对股价造成沉重压力。
关键的外卖
洪利夫医疗保健管理集团(Honliv Healthcare Management Group)的股价最近出现了一些良好的势头,这确实抬高了其市盈率。虽然市盈率不应该成为你是否购买一只股票的决定性因素,但它是一个很好的盈利预期晴雨表。
我们已经确定,Honliv Healthcare Management Group目前的市盈率远远高于预期,因为它最近的收益在中期内一直在下降。当我们看到盈利出现倒退,表现逊于市场预期时,我们怀疑股价有下跌的风险,导致高市盈率走低。如果近期的中期盈利趋势持续下去,将使股东的投资面临重大风险,潜在投资者面临支付过高溢价的危险。
别忘了,可能还有其他风险。例如,我们已经确定1个Honliv Healthcare Management Group的警告标志这一点你应该知道。
当然了,你也许还能找到比Honliv Healthcare Management Group更好的股票。所以你可能想看看这个免费市盈率低于20倍、盈利增长强劲的其他公司的集合。
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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。