OrbusNeich Medical Group Holdings Limited (HKG:6929) shareholders won't be pleased to see that the share price has had a very rough month, dropping 26% and undoing the prior period's positive performance. The recent drop completes a disastrous twelve months for shareholders, who are sitting on a 62% loss during that time.
In spite of the heavy fall in price, it's still not a stretch to say that OrbusNeich Medical Group Holdings' price-to-earnings (or "P/E") ratio of 7.7x right now seems quite "middle-of-the-road" compared to the market in Hong Kong, where the median P/E ratio is around 9x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/E.
Recent times have been advantageous for OrbusNeich Medical Group Holdings as its earnings have been rising faster than most other companies. One possibility is that the P/E is moderate because investors think this strong earnings performance might be about to tail off. If not, then existing shareholders have reason to be feeling optimistic about the future direction of the share price.
SEHK:6929 Price to Earnings Ratio vs Industry July 23rd 2024 If you'd like to see what analysts are forecasting going forward, you should check out our free report on OrbusNeich Medical Group Holdings.
How Is OrbusNeich Medical Group Holdings' Growth Trending?
OrbusNeich Medical Group Holdings' P/E ratio would be typical for a company that's only expected to deliver moderate growth, and importantly, perform in line with the market.
If we review the last year of earnings growth, the company posted a terrific increase of 72%. The latest three year period has also seen an excellent 345% overall rise in EPS, aided by its short-term performance. Therefore, it's fair to say the earnings growth recently has been superb for the company.
Looking ahead now, EPS is anticipated to climb by 9.2% per year during the coming three years according to the three analysts following the company. That's shaping up to be materially lower than the 15% per annum growth forecast for the broader market.
In light of this, it's curious that OrbusNeich Medical Group Holdings' P/E sits in line with the majority of other companies. It seems most investors are ignoring the fairly limited growth expectations and are willing to pay up for exposure to the stock. These shareholders may be setting themselves up for future disappointment if the P/E falls to levels more in line with the growth outlook.
The Final Word
Following OrbusNeich Medical Group Holdings' share price tumble, its P/E is now hanging on to the median market P/E. 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 OrbusNeich Medical Group Holdings currently trades on a higher than expected P/E since its forecast growth is lower than the wider market. When we see a weak earnings outlook with slower than market growth, we suspect the share price is at risk of declining, sending the moderate P/E lower. This places shareholders' investments at risk and potential investors in danger of paying an unnecessary premium.
Plus, you should also learn about this 1 warning sign we've spotted with OrbusNeich Medical Group Holdings.
If you're unsure about the strength of OrbusNeich Medical Group Holdings' business, why not explore our interactive list of stocks with solid business fundamentals for some other companies you may have missed.
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OrbusNeich Medical Group Holdings Limited(HKG: 6929)股東不會很高興看到股價經歷了一個非常艱難的月份,下跌了26%,抵消了前一時期的積極表現。對於股東來說,最近的下跌結束了災難性的十二個月,在此期間,股東虧損了62%。
儘管價格大幅下跌,但與市盈率中位數約爲9倍的香港市場相比,OrbusNeich Medical Group Holdings目前7.7倍的市盈率(或 “市盈率”)似乎相當 “處於中間位置”,可以毫不誇張地說。但是,如果市盈率沒有合理的基礎,投資者可能會忽略明顯的機會或潛在的挫折。
最近對OrbusNeich Medical Group Holdings來說是有利的,因爲其收益增長速度快於大多數其他公司。一種可能性是市盈率適中,因爲投資者認爲這種強勁的收益表現可能即將消失。如果不是,那麼現有股東就有理由對股價的未來走向感到樂觀。
SEHK: 6929 2024 年 7 月 23 日與行業的市盈率 如果你想了解分析師對未來的預測,你應該查看我們關於OrbusNeich Medical Group Holdings的免費報告。
OrbusNeich 醫療集團控股公司的增長趨勢如何?
OrbusNeich Medical Group Holdings的市盈率對於一家預計只會實現適度增長,而且重要的是表現與市場保持一致的公司來說是典型的。