The latest analyst coverage could presage a bad day for MMG Limited (HKG:1208), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.
Following the downgrade, the most recent consensus for MMG from its nine analysts is for revenues of US$3.7b in 2022 which, if met, would be a decent 13% increase on its sales over the past 12 months. Statutory earnings per share are supposed to crater 43% to US$0.023 in the same period. Prior to this update, the analysts had been forecasting revenues of US$4.2b and earnings per share (EPS) of US$0.055 in 2022. Indeed, we can see that the analysts are a lot more bearish about MMG's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.
View our latest analysis for MMG
SEHK:1208 Earnings and Revenue Growth August 28th 2022
It'll come as no surprise then, to learn that the analysts have cut their price target 6.6% to US$0.38. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on MMG, with the most bullish analyst valuing it at US$5.00 and the most bearish at US$2.20 per share. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely differing views on what kind of performance this business can generate. With this in mind, we wouldn't rely too heavily on the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting MMG's growth to accelerate, with the forecast 28% annualised growth to the end of 2022 ranking favourably alongside historical growth of 0.008% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.0% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect MMG to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.
A high debt burden combined with a downgrade of this magnitude always gives us some reason for concern, especially if these forecasts are just the first sign of a business downturn. To see more of our financial analysis, you can click through to our free platform to learn more about its balance sheet and specific concerns we've identified.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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最新的分析师报道可能预示着对MMG有限公司(HKG:1208),分析师们一刀切地削减了他们的法定预期,这可能会让股东有点震惊。营收和每股收益(EPS)预期都被下调,分析师们看到了地平线上的乌云。
评级下调后,九位分析师对MMG的最新共识是,2022年营收将达到37亿美元,如果实现这一目标,将比过去12个月的销售额可观增长13%。同期法定每股收益预计将下降43%,至0.023美元。在此次更新之前,分析师一直预测2022年收入为42亿美元,每股收益为0.055美元。事实上,我们可以看到,分析师们对五矿资源的前景更加悲观,他们大幅下调了收入预期,并大幅下调了每股收益预期。
查看我们对MMG的最新分析
联交所:1208盈利及收入增长2022年8月28日
得知分析师将目标股价下调6.6%至0.38美元,也就不足为奇了。然而,盯着一个单一的价格目标可能是不明智的,因为共识目标实际上是分析师价格目标的平均值。因此,一些投资者喜欢看看预估区间,看看对该公司的估值是否存在分歧意见。对MMG有一些不同的看法,最乐观的分析师对其估值为5.00美元,最悲观的分析师估值为每股2.20美元。因此,在这种情况下,我们不会对分析师的价格目标赋予太多可信度,因为对于这项业务能产生什么样的表现,显然存在一些截然不同的观点。考虑到这一点,我们不会过于依赖共识目标价,因为这只是一个平均值,分析师显然对该业务有一些严重的分歧。
从现在的大局来看,我们能够理解这些预测的方法之一,是看看它们如何与过去的业绩和行业增长预期相比较。分析师们肯定预计五矿资源的增长将会加快,截至2022年底的预测年化增长率为28%,与过去五年0.008%的历史年增长率相比是有利的。相比之下,我们的数据显示,类似行业的其他公司(有分析师覆盖)的收入预计将以每年4.0%的速度增长。显而易见的是,尽管增长前景比最近一段时间更光明,但分析师们也预计,五矿资源的增长速度将快于整个行业。
底线
最重要的是,分析师们下调了每股收益预期,预计商业环境将出现明显下滑。不幸的是,分析师也下调了他们的营收预期,尽管我们的数据表明,营收表现预计将好于大盘。考虑到评级下调的范围,市场对这项业务变得更加警惕并不令人意外。
沉重的债务负担加上如此规模的降级,总是让我们有理由感到担忧,特别是如果这些预测只是商业低迷的第一个迹象。要查看我们的更多财务分析,您可以点击进入我们的免费平台,以了解更多关于其资产负债表和我们确定的具体问题。
另一件需要考虑的事情是,管理层和董事最近是否一直在买入或卖出股票。我们在我们的平台上提供了过去12个月所有公开市场股票交易的概述,此处。
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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。