Three's Company Media Group Co., Ltd.'s (SHSE:605168) price-to-earnings (or "P/E") ratio of 12.2x might make it look like a strong buy right now compared to the market in China, where around half of the companies have P/E ratios above 35x and even P/E's above 63x are quite common. 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.
Three's Company Media Group certainly has been doing a good job lately as its earnings growth has been positive while most other companies have been seeing their earnings go backwards. 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.
See our latest analysis for Three's Company Media Group
Keen to find out how analysts think Three's Company Media Group's future stacks up against the industry? In that case, our free report is a great place to start.
How Is Three's Company Media Group's Growth Trending?
Three's Company Media Group'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 terrific increase of 42%. The latest three year period has also seen an excellent 110% overall rise in EPS, aided by its short-term performance. So we can start by confirming that the company has done a great job of growing earnings over that time.
Looking ahead now, EPS is anticipated to climb by 39% during the coming year according to the three analysts following the company. With the market predicted to deliver 44% growth , the company is positioned for a weaker earnings result.
In light of this, it's understandable that Three's Company Media Group's P/E sits below the majority of other companies. Apparently many shareholders weren't comfortable holding on while the company is potentially eyeing a less prosperous future.
The Bottom Line On Three's Company Media Group's P/E
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.
As we suspected, our examination of Three's Company Media Group's analyst forecasts revealed that its inferior earnings outlook is contributing to its low P/E. At this stage investors feel the potential for an improvement in earnings isn't great enough to justify a higher P/E ratio. 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 3 warning signs for Three's Company Media Group (1 is significant!) 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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Three's Company 媒體集團有限公司”s(SHSE: 605168)市盈率(或 “市盈率”)爲12.2倍,與中國市場相比,目前看上去像是一個強勁的買盤,中國約有一半的公司的市盈率超過35倍,甚至市盈率超過63倍也很常見。但是,僅按面值計算市盈率是不明智的,因爲可以解釋爲什麼市盈率如此有限。
Three's Company Media Group最近確實做得很好,因爲其收益增長是正的,而大多數其他公司的收益卻在倒退。一種可能性是市盈率很低,因爲投資者認爲該公司的收益將像其他所有人一樣很快下降。如果你喜歡這家公司,你希望情況並非如此,這樣你就有可能在它失寵的時候買入一些股票。
查看我們對三家公司媒體集團的最新分析
想了解分析師如何看待Three's Company Media Group的未來與該行業的對立嗎?在這種情況下,我們的免費報告是一個很好的起點。
Three's Company Media Group的增長趨勢如何?
Three's Company Media Group的市盈率對於一家預計增長非常糟糕甚至收益下降的公司來說是典型的,更重要的是,其表現要比市場差得多。