B & S International Holdings Ltd. (HKG:1705) shareholders have had their patience rewarded with a 33% share price jump in the last month. Taking a wider view, although not as strong as the last month, the full year gain of 19% is also fairly reasonable.
Although its price has surged higher, B & S International Holdings may still be sending bullish signals at the moment with its price-to-earnings (or "P/E") ratio of 4.8x, 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. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the reduced P/E.
Earnings have risen firmly for B & S International Holdings recently, which is pleasing to see. It might be that many expect the respectable earnings performance to degrade substantially, 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.
SEHK:1705 Price to Earnings Ratio vs Industry June 28th 2024 Want the full picture on earnings, revenue and cash flow for the company? Then our free report on B & S International Holdings will help you shine a light on its historical performance.
What Are Growth Metrics Telling Us About The Low P/E?
B & S International Holdings' P/E ratio would be typical for a company that's only expected to deliver limited growth, and importantly, perform worse than the market.
Retrospectively, the last year delivered an exceptional 21% gain to the company's bottom line. Pleasingly, EPS has also lifted 5,666% in aggregate from three years ago, thanks to the last 12 months of growth. Accordingly, shareholders would have probably welcomed those medium-term rates of earnings growth.
Weighing that recent medium-term earnings trajectory against the broader market's one-year forecast for expansion of 21% shows it's noticeably more attractive on an annualised basis.
In light of this, it's peculiar that B & S International Holdings' P/E sits below the majority of other companies. Apparently some shareholders believe the recent performance has exceeded its limits and have been accepting significantly lower selling prices.
What We Can Learn From B & S International Holdings' P/E?
Despite B & S International Holdings' shares building up a head of steam, its P/E still lags most other companies. We'd say the price-to-earnings ratio's power isn't primarily as a valuation instrument but rather to gauge current investor sentiment and future expectations.
We've established that B & S International Holdings currently trades on a much lower than expected P/E since its recent three-year growth is higher than the wider market forecast. There could be some major unobserved threats to earnings preventing the P/E ratio from matching this positive performance. At least price risks look to be very low if recent medium-term earnings trends continue, but investors seem to think future earnings could see a lot of volatility.
You should always think about risks. Case in point, we've spotted 2 warning signs for B & S International Holdings you should be aware of.
Of course, you might also be able to find a better stock than B & S International Holdings. So you may wish to see this free collection of other companies that have reasonable P/E ratios and have grown earnings strongly.
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B&S International Holdings Ltd.(HKG: 1705) 股東們的耐心獲得了近一個月 33% 的股價上漲。更廣闊的視角來看,雖然不如上個月那麼強勁,但全年收益爲 19%,也相當合理。
鑑於此,奇怪的是,B&S International Holdings 的市盈率低於其他公司的大部分。顯然,一些股東認爲最近的表現已經超出了其限制,並已接受了明顯較低的出售價格。
從 B&S International Holdings 的市盈率我們可以學到什麼?
儘管 B&S International Holdings 的股價已經持續上漲,但它的市盈率仍然落後於大多數其他公司。我們認爲,市盈率的主要作用不是作爲估值工具,而是爲了評估當前的投資者情緒和未來的預期。
我們已經確定,B&S International Holdings 目前的市盈率要低得多,因爲它最近三年的增長高於更廣泛的市場預測。阻止市盈率與這種正面表現相匹配的可能存在一些重大未觀察到的收益威脅。如果最近中期的收益趨勢繼續,至少價格風險看起來非常低,但投資者似乎認爲未來的收益可能會出現很大的波動。
您應該時刻思考風險。例如,我們已經發現b&S International Holdings存在2個警告信號,您需要注意。
當然,你可能會找到比 B&S International Holdings 更好的股票。因此,你可能希望查看這些市盈率合理且收益增長強勁的其他公司的免費集合。