Those holding Three's Company Media Group Co., Ltd. (SHSE:605168) shares would be relieved that the share price has rebounded 35% in the last thirty days, but it needs to keep going to repair the recent damage it has caused to investor portfolios. Not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 28% in the last twelve months.
In spite of the firm bounce in price, Three's Company Media Group may still be sending very bullish signals at the moment with its price-to-earnings (or "P/E") ratio of 11.6x, since almost half of all companies in China have P/E ratios greater than 30x and even P/E's higher than 55x 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.
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. It might be that many expect the strong earnings performance to degrade substantially, possibly more than the market, which has repressed the P/E. If not, then existing shareholders have reason to be quite optimistic about the future direction of the share price.
Want the full picture on analyst estimates for the company? Then our free report on Three's Company Media Group will help you uncover what's on the horizon.
How Is Three's Company Media Group's Growth Trending?
There's an inherent assumption that a company should far underperform the market for P/E ratios like Three's Company Media Group's to be considered reasonable.
If we review the last year of earnings growth, the company posted a terrific increase of 42%. The strong recent performance means it was also able to grow EPS by 110% in total over the last three years. 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. That's shaping up to be similar to the 41% growth forecast for the broader market.
In light of this, it's peculiar that Three's Company Media Group's P/E sits below the majority of other companies. Apparently some shareholders are doubtful of the forecasts and have been accepting lower selling prices.
The Bottom Line On Three's Company Media Group's P/E
Shares in Three's Company Media Group are going to need a lot more upward momentum to get the company's P/E out of its slump. 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.
Our examination of Three's Company Media Group's analyst forecasts revealed that its market-matching earnings outlook isn't contributing to its P/E as much as we would have predicted. When we see an average earnings outlook with market-like growth, we assume potential risks are what might be placing pressure on the P/E ratio. It appears some are indeed anticipating earnings instability, because these conditions should normally provide more support to the share price.
Don't forget that there may be other risks. For instance, we've identified 2 warning signs for Three's Company Media Group (1 makes us a bit uncomfortable) 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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持有Three's Company Media Group有限公司(SHSE: 605168)股票的人會鬆一口氣,因爲股價在過去三十天中反彈了35%,但它需要繼續修復最近對投資者投資組合造成的損失。並非所有股東都會感到歡欣鼓舞,因爲股價在過去十二個月中仍然下跌了令人失望的28%。
儘管價格穩步反彈,但Three's Company Media Group目前可能仍在發出非常看漲的信號,其市盈率(或 “市盈率”)爲11.6倍,因爲幾乎一半的中國公司的市盈率超過30倍,即使市盈率高於55倍也並不罕見。但是,市盈率可能很低是有原因的,需要進一步調查以確定其是否合理。
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。許多人可能預計,強勁的盈利表現將大幅下降,可能超過抑制市盈率的市場。否則,現有股東有理由對股價的未來走向持相當樂觀的態度。
想全面了解分析師對公司的估計嗎?然後,我們關於Three's Company Media Group的免費報道將幫助您發現即將發生的事情。
Three's Company Media Group的增長趨勢如何?
人們固有的假設是,如果像Three's Company Media Group這樣的市盈率被認爲是合理的,公司的表現應該遠遠低於市場。