When close to half the companies in China have price-to-earnings ratios (or "P/E's") above 36x, you may consider Wintime Energy Group Co.,Ltd. (SHSE:600157) as a highly attractive investment with its 15.3x P/E ratio. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the highly reduced P/E.
With its earnings growth in positive territory compared to the declining earnings of most other companies, Wintime Energy GroupLtd has been doing quite well of late. One possibility is that the P/E is low because investors think the company's earnings are going to fall away like everyone else's soon. 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.
Check out our latest analysis for Wintime Energy GroupLtd
SHSE:600157 Price to Earnings Ratio vs Industry January 2nd 2024 Want the full picture on analyst estimates for the company? Then our free report on Wintime Energy GroupLtd will help you uncover what's on the horizon.
How Is Wintime Energy GroupLtd's Growth Trending?
Wintime Energy GroupLtd's P/E ratio would be typical for a company that's expected to deliver very poor growth or even falling earnings, and importantly, perform much worse than the market.
If we review the last year of earnings growth, the company posted a worthy increase of 4.6%. This was backed up an excellent period prior to see EPS up by 1,179% in total over the last three years. Accordingly, shareholders would have probably welcomed those medium-term rates of earnings growth.
Turning to the outlook, the next year should generate growth of 34% as estimated by the dual analysts watching the company. Meanwhile, the rest of the market is forecast to expand by 43%, which is noticeably more attractive.
With this information, we can see why Wintime Energy GroupLtd is trading at a P/E lower than the market. Apparently many shareholders weren't comfortable holding on while the company is potentially eyeing a less prosperous future.
The Bottom Line On Wintime Energy GroupLtd's P/E
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.
We've established that Wintime Energy GroupLtd maintains its low P/E on the weakness of its forecast growth being lower than the wider market, as expected. Right now shareholders are accepting the low P/E as they concede future earnings probably won't provide any pleasant surprises. It's hard to see the share price rising strongly in the near future under these circumstances.
Before you settle on your opinion, we've discovered 1 warning sign for Wintime Energy GroupLtd that you should be aware of.
If P/E ratios interest you, you may wish to see this free collection of other companies with strong earnings growth and low P/E ratios.
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当中国将近一半的公司的市盈率(或 “市盈率”)高于36倍时,你可以考虑Wintime Energy Group Co., Ltd.(上海证券交易所股票代码:600157)是一项极具吸引力的投资,市盈率为15.3倍。尽管如此,我们需要更深入地挖掘,以确定市盈率大幅下降是否有合理的基础。
与大多数其他公司的收益下降相比,Wintime Energy GroupLtd的收益增长处于正值区间,最近表现良好。一种可能性是市盈率很低,因为投资者认为该公司的收益将像其他所有人一样很快下降。如果你喜欢这家公司,你希望情况并非如此,这样你就有可能在它失宠的时候买入一些股票。