Alliance International Education Leasing Holdings Limited (HKG:1563) shares have retraced a considerable 29% in the last month, reversing a fair amount of their solid recent performance. The recent drop completes a disastrous twelve months for shareholders, who are sitting on a 89% loss during that time.
After such a large drop in price, Alliance International Education Leasing Holdings may be sending very bullish signals at the moment with its price-to-earnings (or "P/E") ratio of 4.4x, since almost half of all companies in Hong Kong have P/E ratios greater than 10x and even P/E's higher than 19x are not unusual. However, the P/E might be quite low for a reason and it requires further investigation to determine if it's justified.
For example, consider that Alliance International Education Leasing Holdings' financial performance has been poor lately as its earnings have been in decline. One possibility is that the P/E is low because investors think the company won't do enough to avoid underperforming the broader market in the near future. However, if this doesn't eventuate then existing shareholders may be feeling optimistic about the future direction of the share price.
SEHK:1563 Price to Earnings Ratio vs Industry June 20th 2024 Although there are no analyst estimates available for Alliance International Education Leasing Holdings, take a look at this free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.
Does Growth Match The Low P/E?
Alliance International Education Leasing Holdings' 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.
Retrospectively, the last year delivered a frustrating 51% decrease to the company's bottom line. Unfortunately, that's brought it right back to where it started three years ago with EPS growth being virtually non-existent overall during that time. Accordingly, shareholders probably wouldn't have been overly satisfied with the unstable medium-term growth rates.
Weighing that recent medium-term earnings trajectory against the broader market's one-year forecast for expansion of 21% shows it's noticeably less attractive on an annualised basis.
In light of this, it's understandable that Alliance International Education Leasing Holdings' P/E sits below the majority of other companies. 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.
What We Can Learn From Alliance International Education Leasing Holdings' P/E?
Alliance International Education Leasing Holdings' P/E looks about as weak as its stock price lately. 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 Alliance International Education Leasing Holdings maintains its low P/E on the weakness of its recent three-year growth being lower than the wider market forecast, as expected. At this stage investors feel the potential for an improvement in earnings isn't great enough to justify a higher P/E ratio. Unless the recent medium-term conditions improve, they will continue to form a barrier for the share price around these levels.
Before you settle on your opinion, we've discovered 2 warning signs for Alliance International Education Leasing Holdings (1 is potentially serious!) that you should be aware of.
Of course, you might also be able to find a better stock than Alliance International Education Leasing Holdings. So you may wish to see this free collection of other companies that have reasonable P/E ratios and have grown earnings strongly.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
Alliance International Education Leasing Holdings Limited(HKG:1563)股票在过去一个月中已经下跌了相当可观的29%,扭转了其之前表现强劲的走势。最近的下跌完成了股东灾难性的12个月,股东在这段时间内遭受了89%的亏损。
在这样一大跌的价格之后,Alliance International Education Leasing Holdings可能通过其市盈率(即“P/E”)比率为4.4x发送非常积极的信号,因为香港近一半的公司的市盈率大于10倍,甚至市盈率高于19倍也不是太飞凡的事。然而,P/E可能非常低是有原因的,需要进一步调查以判断是否合理。
例如,考虑到Alliance International Education Leasing Holdings的财务表现最近一直较差,因为其收益持续下滑。有一种可能是P/E之所以低是因为投资者认为该公司未来短期内无法避免表现不佳。然而,如果这种情况没有发生,现有股东可能对股票价格的未来走向感到乐观。
SEHK:1563市盈率vs行业板块(2024年6月20日)虽然目前没有Alliance International Education Leasing Holdings的分析师预估数据可用,但可以查看这个免费的数据丰富的可视化图表,了解该公司的收益、营业收入和现金流水平。
增长是否与低市盈率相匹配?
Alliance International Education Leasing Holdings的P/E比率对于一个预计收益非常低甚至下滑,并且重要的是表现比市场差得多的公司而言是典型的。
鉴于这一情况,Alliance International Education Leasing Holdings的P/E低于其他大多数公司似乎是可以理解的。似乎大多数投资者预计该公司的有限增长率将继续下去,并且只愿意为该股票支付较少的费用。
我们从Alliance International Education Leasing Holdings的P/E中可以得出什么教训?
Alliance International Education Leasing Holdings的P/E最近的表现与其股票价格一样疲软。尽管市盈率不应该是您是否购买股票的决定性因素,但它确实是盈利预期的相当有力的指标。
我们已经确定了Alliance International Education Leasing Holdings保持其低P/E的原因是其近三年的增长率低于市场预测,这是预料中的。此时,投资者认为收益改善的潜力还不足以证明较高的P/E比率是合理的。除非近期中期条件改善,否则它们将继续形成股票价格在这些水平附近的障碍。
在您做出决定之前,我们已经发现了Alliance International Education Leasing Holdings的两个警告信号(其中1个可能是严重问题!)您应该知道。
当然,您可能也会找到比Alliance International Education Leasing Holdings更好的股票。因此,您可能希望查看这个免费的其他具有合理P/E比率并且收益强劲的公司集合。