Despite an already strong run, Shanghai Kai Kai Industry Company Limited (SHSE:900943) shares have been powering on, with a gain of 25% in the last thirty days. The last 30 days bring the annual gain to a very sharp 60%.
Although its price has surged higher, Shanghai Kai Kai Industry may still be sending bullish signals at the moment with its price-to-earnings (or "P/E") ratio of 27.2x, since almost half of all companies in China have P/E ratios greater than 32x and even P/E's higher than 59x are not unusual. However, the P/E might be low for a reason and it requires further investigation to determine if it's justified.
Shanghai Kai Kai Industry certainly has been doing a great job lately as it's been growing earnings at a really rapid pace. One possibility is that the P/E is low because investors think this strong earnings growth might actually underperform the broader market in the near future. 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.
View our latest analysis for Shanghai Kai Kai Industry
SHSE:900943 Price Based on Past Earnings October 24th 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 Shanghai Kai Kai Industry's earnings, revenue and cash flow.
How Is Shanghai Kai Kai Industry's Growth Trending?
The only time you'd be truly comfortable seeing a P/E as low as Shanghai Kai Kai Industry's is when the company's growth is on track to lag the market.
If we review the last year of earnings growth, the company posted a terrific increase of 202%. The strong recent performance means it was also able to grow EPS by 80% in total over the last three years. Therefore, it's fair to say the earnings growth recently has been superb for the company.
Weighing that recent medium-term earnings trajectory against the broader market's one-year forecast for expansion of 41% shows it's noticeably less attractive on an annualised basis.
With this information, we can see why Shanghai Kai Kai Industry is trading at a P/E lower than the market. It seems most investors are expecting to see the recent limited growth rates continue into the future and are only willing to pay a reduced amount for the stock.
The Key Takeaway
Despite Shanghai Kai Kai Industry's 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.
As we suspected, our examination of Shanghai Kai Kai Industry revealed its three-year earnings trends are contributing to its low P/E, given they look worse than current market expectations. Right now shareholders are accepting the low P/E as they concede future earnings probably won't provide any pleasant surprises. Unless the recent medium-term conditions improve, they will continue to form a barrier for the share price around these levels.
Don't forget that there may be other risks. For instance, we've identified 3 warning signs for Shanghai Kai Kai Industry (2 can't be ignored) you should be aware of.
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.
尽管已经表现强劲,上海凯业实业有限公司(上海证券交易所股票代码:900943)股价一路飙升,在过去的30天里上涨了25%。在过去的30天里,年度涨幅达到了非常大的60%。
尽管股价飙升,但上海凯业目前可能仍在发出看涨信号,其市盈率(P/E)为27.2倍,因为在中国所有的公司中,近一半的市盈率高于32倍,即使市盈率高于59倍也并不罕见。然而,市盈率可能是有原因的,需要进一步调查才能确定它是否合理。
上海凯业最近确实做得很好,因为它一直在以非常快的速度增长收益。一种可能性是,市盈率较低,因为投资者认为,这种强劲的收益增长在不久的将来实际上可能会逊于大盘。如果你喜欢这家公司,你会希望情况并非如此,这样你就可以在它不再受青睐的时候买入一些股票。
查看我们对上海凯凯行业的最新分析
上海证券交易所:900943价格基于过去的收益2022年10月24日我们没有分析师的预测,但你可以通过查看我们的
免费报告上海凯凯实业的收益、收入和现金流。
上海凯业的发展趋势如何?
只有当上海凯业的增长落后于市场时,你才会真正放心地看到该公司的市盈率如此之低。
如果我们回顾过去一年的收益增长,该公司公布了202%的惊人增长。最近的强劲表现意味着它还能够在过去三年中总共增长80%的每股收益。因此,公平地说,最近的收益增长对公司来说是一流的。
将最近的中期收益轨迹与大盘一年增长41%的预测进行比较,结果显示,按年率计算,它的吸引力明显下降。
有了这些信息,我们就可以理解为什么上海凯凯实业的市盈率低于市场。似乎大多数投资者都预计,最近有限的增长率将持续到未来,他们只愿意为该股支付较低的价格。
关键的外卖
尽管上海凯业的股价一路高歌猛进,但其市盈率仍落后于大多数其他公司。通常,在做出投资决策时,我们会告诫不要过度解读市盈率,尽管它可以充分揭示其他市场参与者对该公司的看法。
正如我们怀疑的那样,我们对上海凯业的调查显示,鉴于市盈率低于当前市场预期,该公司三年的盈利趋势是导致其市盈率较低的原因之一。目前,股东们正在接受低市盈率,因为他们承认,未来的收益可能不会带来任何令人愉快的惊喜。除非近期的中期状况有所改善,否则将继续在这些水平附近形成股价障碍。
别忘了,可能还有其他风险。例如,我们已经确定上海凯业的三个警示信号(2)不能忽视)你应该知道。
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。