To the annoyance of some shareholders, Wai Kee Holdings Limited (HKG:610) shares are down a considerable 25% in the last month, which continues a horrid run for the company. The drop over the last 30 days has capped off a tough year for shareholders, with the share price down 47% in that time.
Following the heavy fall in price, Wai Kee Holdings may be sending very bullish signals at the moment with its price-to-earnings (or "P/E") ratio of 3.6x, since almost half of all companies in Hong Kong have P/E ratios greater than 9x and even P/E's higher than 19x are not unusual. Although, it's not wise to just take the P/E at face value as there may be an explanation why it's so limited.
As an illustration, earnings have deteriorated at Wai Kee Holdings over the last year, which is not ideal at all. It might be that many expect the disappointing earnings performance to continue or accelerate, which has repressed the P/E. 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.
See our latest analysis for Wai Kee Holdings
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SEHK:610 Price Based on Past Earnings October 10th 2022 Although there are no analyst estimates available for Wai Kee Holdings, take a look at this
free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.
How Is Wai Kee Holdings' Growth Trending?
The only time you'd be truly comfortable seeing a P/E as depressed as Wai Kee Holdings' is when the company's growth is on track to lag the market decidedly.
If we review the last year of earnings, dishearteningly the company's profits fell to the tune of 51%. As a result, earnings from three years ago have also fallen 63% overall. So unfortunately, we have to acknowledge that the company has not done a great job of growing earnings over that time.
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 understandable that Wai Kee Holdings' P/E would sit below the majority of other companies. Nonetheless, there's no guarantee the P/E has reached a floor yet with earnings going in reverse. There's potential for the P/E to fall to even lower levels if the company doesn't improve its profitability.
The Bottom Line On Wai Kee Holdings' P/E
Wai Kee Holdings' P/E looks about as weak as its stock price lately. Generally, our preference is to limit the use of the price-to-earnings ratio to establishing what the market thinks about the overall health of a company.
We've established that Wai Kee Holdings maintains its low P/E on the weakness of its sliding earnings over the medium-term, 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 take the next step, you should know about the 3 warning signs for Wai Kee Holdings (1 shouldn't be ignored!) that we have uncovered.
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.
令一些股東惱火的是,惠記集團有限公司(HKG:610)該公司股價在過去一個月大幅下跌25%,延續了可怕的漲勢。過去30天的下跌為股東們艱難的一年畫上了句號,股價在此期間下跌了47%。
在股價暴跌之後,偉記控股目前可能發出了非常看漲的信號,其市盈率(P/E)為3.6倍,因為香港幾乎一半的公司的市盈率高於9倍,即使市盈率高於19倍也並不罕見。儘管如此,僅僅從面值來看待市盈率是不明智的,因為可能會有一個解釋,為什麼它如此有限。
舉例來説,惠記控股的收益在過去一年裏一直在惡化,這根本不是理想的情況。許多人可能預計令人失望的盈利表現將持續或加速,這抑制了市盈率。如果你喜歡一家公司,你會希望情況並非如此,這樣你就可以在不受青睞的時候買入一些股票。
查看我們對惠記控股的最新分析
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聯交所:610按過去盈利計算的價格2022年10月10日雖然沒有分析師對惠記控股的估計,但請看這一點
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。
偉記控股的增長趨勢如何?
只有當公司的增長明顯落後於市場時,你才會真正放心地看到偉記控股這樣低迷的市盈率。
如果我們回顧去年的收益,令人沮喪的是,該公司的利潤下降了51%。因此,三年前的整體收益也下降了63%。因此,不幸的是,我們不得不承認,在這段時間裏,該公司在盈利增長方面做得並不出色。
與預計未來12個月將實現20%增長的市場相比,根據最近的中期收益結果,該公司的下行勢頭令人警醒。
有鑑於此,偉記控股的市盈率低於大多數其他公司也是可以理解的。儘管如此,不能保證市盈率已經觸底,盈利出現了逆轉。如果該公司不提高盈利能力,市盈率有可能降至更低的水平。
偉記控股市盈率的底線
偉記控股最近的市盈率看起來和股價一樣疲軟。一般來説,我們傾向於限制市盈率的使用,以確定市場對公司整體健康狀況的看法。
我們已經確定,惠記控股一如預期,在中期盈利下滑的疲軟情況下維持低市盈率。在這個階段,投資者認為盈利改善的潛力還不夠大,不足以證明提高市盈率是合理的。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。
在您採取下一步之前,您應該瞭解惠記控股的3個警告標誌(1不應該被忽視!)我們已經發現了。
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。
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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。