HM International Holdings Limited (HKG:8416) shareholders would be excited to see that the share price has had a great month, posting a 32% gain and recovering from prior weakness. But not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 21% in the last twelve months.
Even after such a large jump in price, HM International Holdings' price-to-earnings (or "P/E") ratio of 3.6x might still make it look like a strong buy right now compared to the market in Hong Kong, where around half of the companies have P/E ratios above 9x and even P/E's above 20x are quite common. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the highly reduced P/E.
HM International Holdings 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 HM International Holdings
SEHK:8416 Price Based on Past Earnings August 29th 2022 Although there are no analyst estimates available for HM International Holdings, take a look at this
free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.
Is There Any Growth For HM International Holdings?
There's an inherent assumption that a company should far underperform the market for P/E ratios like HM International Holdings' to be considered reasonable.
Retrospectively, the last year delivered an exceptional 206% gain to the company's bottom line. Pleasingly, EPS has also lifted 36% in aggregate from three years ago, thanks to the last 12 months of growth. So we can start by confirming that the company has done a great job of growing earnings over that time.
Comparing that to the market, which is predicted to deliver 16% growth in the next 12 months, the company's momentum is weaker based on recent medium-term annualised earnings results.
In light of this, it's understandable that HM International Holdings' P/E sits below the majority of other companies. Apparently many shareholders weren't comfortable holding on to something they believe will continue to trail the bourse.
The Key Takeaway
Even after such a strong price move, HM International Holdings' P/E still trails the rest of the market significantly. 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.
As we suspected, our examination of HM International Holdings 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.
Having said that, be aware HM International Holdings is showing 3 warning signs in our investment analysis, and 2 of those are a bit concerning.
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).
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.
HM國際控股有限公司(HKG:8416)股東將興奮地看到股價經歷了一個偉大的月,公佈了32%的漲幅,並從之前的疲軟中恢復過來。但並不是所有的股東都會感到歡欣鼓舞,因為在過去的12個月裏,該公司的股價仍下跌了非常令人失望的21%。
即使在股價大幅上漲之後,HM International Holdings 3.6倍的市盈率(本益比)仍可能使其目前看起來像是一隻強勁的買入股票。在香港,大約一半的公司的市盈率高於9倍,甚至市盈率高於20倍的情況也相當常見。儘管如此,我們還需要更深入地挖掘,以確定市盈率大幅下降是否有合理的基礎。
HM國際控股最近確實做得很好,因為它一直在以非常快的速度增長收益。一種可能性是,市盈率較低,因為投資者認為,這種強勁的收益增長在不久的將來實際上可能會遜於大盤。如果你喜歡這家公司,你會希望情況並非如此,這樣你就可以在它不再受青睞的時候買入一些股票。
查看我們對HM國際控股的最新分析
聯交所:8416基於過去收益的價格2022年8月29日雖然沒有分析師對HM International Holdings的估計,但看看這個
免費豐富的數據可視化,看看公司的收益、收入和現金流是如何堆積的。
HM國際控股公司有增長嗎?
有一種固有的假設,即一家公司的市盈率應該遠遠遜於市場,而像HM International Holdings這樣的市盈率才被認為是合理的。
回顧過去一年,公司的利潤實現了206%的不同尋常的增長。令人欣喜的是,由於過去12個月的增長,每股收益也比三年前累計上漲了36%。因此,我們可以從確認該公司在這段時間內在增長收益方面做得很好開始。
與預計未來12個月將實現16%增長的市場相比,根據最近的中期年化收益結果,該公司的增長勢頭較弱。
有鑑於此,HM國際控股公司的市盈率低於大多數其他公司也是可以理解的。顯然,許多股東對持有一隻他們認為將繼續追隨該交易所走勢的股票感到不安。
關鍵的外賣
即使在如此強勁的價格變動之後,HM International Holdings的市盈率仍明顯落後於市場其他板塊。雖然市盈率不應該是你是否買入一隻股票的決定性因素,但它是一個很好的盈利預期晴雨表。
正如我們懷疑的那樣,我們對HM國際控股公司的調查顯示,鑑於其市盈率低於當前市場預期,其三年盈利趨勢是導致其市盈率較低的原因之一。目前,股東們正在接受低市盈率,因為他們承認,未來的收益可能不會帶來任何令人愉快的驚喜。除非近期的中期狀況有所改善,否則將繼續在這些水平附近形成股價障礙。
話雖如此,但請注意HM國際控股公司出現3個警告信號在我們的投資分析中,其中兩個有點令人擔憂。
重要的是確保你尋找的是一家偉大的公司,而不僅僅是你遇到的第一個想法。所以讓我們來看看這個免費近期盈利增長強勁(市盈率低於20倍)的有趣公司名單。
對這篇文章有什麼反饋嗎?擔心內容嗎? 保持聯繫直接與我們聯繫。或者,也可以給編輯組發電子郵件,地址是implywallst.com。
本文由Simply Wall St.撰寫,具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論,我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議,也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意,我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。