Those holding Meilleure Health International Industry Group Limited (HKG:2327) shares would be relieved that the share price has rebounded 46% 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 26% over that time.
After such a large jump in price, Meilleure Health International Industry Group's price-to-earnings (or "P/E") ratio of 18.1x might make it look like a strong sell right now compared to the market in Hong Kong, where around half of the companies have P/E ratios below 9x and even P/E's below 5x are quite common. 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 Meilleure Health International Industry 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. You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason.
SEHK:2327 Price to Earnings Ratio vs Industry May 21st 2024 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 Meilleure Health International Industry Group's earnings, revenue and cash flow.
How Is Meilleure Health International Industry Group's Growth Trending?
In order to justify its P/E ratio, Meilleure Health International Industry Group would need to produce outstanding growth well in excess of the market.
Taking a look back first, we see that the company grew earnings per share by an impressive 130% last year. Still, incredibly EPS has fallen 49% in total from three years ago, which is quite disappointing. Therefore, it's fair to say the earnings growth recently has been undesirable for the company.
Comparing that to the market, which is predicted to deliver 20% growth in the next 12 months, the company's downward momentum based on recent medium-term earnings results is a sobering picture.
In light of this, it's alarming that Meilleure Health International Industry Group's P/E sits above the majority of other companies. Apparently many investors in the company are way more bullish than recent times would indicate and aren't willing to let go of their stock at any price. 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
The strong share price surge has got Meilleure Health International Industry Group's P/E rushing to great heights as well. Using the price-to-earnings ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects.
Our examination of Meilleure Health International Industry Group revealed its shrinking earnings over the medium-term aren't impacting its high P/E anywhere near as much as we would have predicted, given the market is set to grow. 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. Unless the recent medium-term conditions improve markedly, it's very challenging to accept these prices as being reasonable.
You should always think about risks. Case in point, we've spotted 4 warning signs for Meilleure Health International Industry Group you should be aware of, and 2 of them don't sit too well with us.
If you're unsure about the strength of Meilleure Health International Industry Group's business, why not explore our interactive list of stocks with solid business fundamentals for some other companies you may have missed.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. 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.
那些持有Meilleure Health International Industry Group Limited(HKG: 2327)股票的人会松一口气,因为股价在过去三十天中反弹了46%,但它需要继续修复最近对投资者投资组合造成的损害。不幸的是,上个月的涨幅几乎没有弥补去年的亏损,在此期间,该股仍下跌了26%。
在价格大幅上涨之后,Meilleure Health International Industry Group的市盈率(或 “市盈率”)为18.1倍,与香港市场相比,目前看上去像是强劲的抛售。在香港,约有一半公司的市盈率低于9倍,甚至市盈率低于5倍也很常见。尽管如此,我们需要更深入地挖掘,以确定市盈率的高涨是否有合理的基础。
最近对Meilleure Health International Industry Group来说非常有利,因为其收益一直在快速增长。看来许多人预计,强劲的收益表现将在未来一段时间内击败大多数其他公司,这增加了投资者购买股票的意愿。你真的希望如此,否则你会无缘无故地付出相当大的代价。
SEHK: 2327 对比行业的市盈率 2024 年 5 月 21 日 我们没有分析师的预测,但您可以查看我们关于Meilleure Health International Industry Group收益、收入和现金流的免费报告,了解最近的趋势如何为公司未来做好准备。
Meilleure Health 国际产业集团的增长趋势如何?
为了证明其市盈率是合理的,Meilleure Health International Industry Group需要实现远远超过市场的出色增长。
有鉴于此,令人震惊的是,Meilleure Health International Industry Group的市盈率高于其他大多数公司。显然,该公司的许多投资者比最近所表示的要看涨得多,他们不愿意以任何价格抛售股票。只有最大胆的人才会假设这些价格是可持续的,因为近期收益趋势的延续最终可能会严重压制股价。
关键要点
股价的强劲上涨也使Meilleure Health International Industry Group的市盈率飙升至很高的水平。仅使用市盈率来确定是否应该出售股票是不明智的,但它可以作为公司未来前景的实用指南。
我们对Meilleure Health International Industry Group的审查显示,鉴于市场即将增长,其中期收益萎缩对其高市盈率的影响并没有我们预期的那么大。当我们看到收益倒退且表现低于市场预期时,我们怀疑股价有下跌的风险,导致高市盈率走低。除非最近的中期状况明显改善,否则很难接受这些价格的合理性。
你应该时刻考虑风险。举个例子,我们已经发现了你应该注意的Meilleure Health International Industry Group的4个警告信号,其中两个信号对我们不太满意。
如果您不确定Meilleure Health International Industry Group的业务实力,为什么不浏览我们的互动式股票清单,其中列出了您可能错过的其他一些公司的业务基本面稳健。