To the annoyance of some shareholders, Alliance International Education Leasing Holdings Limited (HKG:1563) shares are down a considerable 28% in the last month, which continues a horrid run for the company. For any long-term shareholders, the last month ends a year to forget by locking in a 86% share price decline.
In spite of the heavy fall in price, there still wouldn't be many who think Alliance International Education Leasing Holdings' price-to-earnings (or "P/E") ratio of 8.4x is worth a mention when the median P/E in Hong Kong is similar at about 9x. While this might not raise any eyebrows, if the P/E ratio is not justified investors could be missing out on a potential opportunity or ignoring looming disappointment.
For example, consider that Alliance International Education Leasing Holdings' financial performance has been poor lately as its earnings have been in decline. One possibility is that the P/E is moderate because investors think the company might still do enough to be in line with the broader market in the near future. If you like the company, you'd at least be hoping this is the case so that you could potentially pick up some stock while it's not quite in favour.
View our latest analysis for Alliance International Education Leasing Holdings
SEHK:1563 Price to Earnings Ratio vs Industry December 23rd 2023 Want the full picture on earnings, revenue and cash flow for the company? Then our free report on Alliance International Education Leasing Holdings will help you shine a light on its historical performance.
Does Growth Match The P/E?
There's an inherent assumption that a company should be matching the market for P/E ratios like Alliance International Education Leasing Holdings' to be considered reasonable.
Taking a look back first, the company's earnings per share growth last year wasn't something to get excited about as it posted a disappointing decline of 51%. This has erased any of its gains during the last three years, with practically no change in EPS being achieved in total. Therefore, it's fair to say that earnings growth has been inconsistent recently for the company.
Comparing that to the market, which is predicted to deliver 23% growth in the next 12 months, the company's momentum is weaker based on recent medium-term annualised earnings results.
In light of this, it's curious that Alliance International Education Leasing Holdings' P/E sits in line with the majority of other companies. It seems most investors are ignoring the fairly limited recent growth rates and are willing to pay up for exposure to the stock. Maintaining these prices will be difficult to achieve as a continuation of recent earnings trends is likely to weigh down the shares eventually.
The Bottom Line On Alliance International Education Leasing Holdings' P/E
With its share price falling into a hole, the P/E for Alliance International Education Leasing Holdings looks quite average now. It's argued the price-to-earnings ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator.
We've established that Alliance International Education Leasing Holdings currently trades on a higher than expected P/E since its recent three-year growth is lower than the wider market forecast. Right now we are uncomfortable with the P/E as this earnings performance isn't likely to support a more positive sentiment for long. If recent medium-term earnings trends continue, it will place shareholders' investments at risk and potential investors in danger of paying an unnecessary premium.
There are also other vital risk factors to consider before investing and we've discovered 2 warning signs for Alliance International Education Leasing Holdings that you should be aware of.
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 low P/E).
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. 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.
株主の不満にもかかわらず、Alliance International Education Leasing Holdings Limited(HKG:1563)の株価は、直近1か月間にかなり下落し、悪い走りを継続しています。長期の株主にとって、この1か月間で株価が86%下落して、忘却すべき年が終わりました。
価格の急落にもかかわらず、Alliance International Education Leasing Holdingsの株価収益率(P / E)比率が8.4倍で、香港の中央値の約9倍と同様であると誰も考えていない人はほとんどいないでしょう。 これが誰の目を引かないかもしれませんが、P / E比率が正当化されていない場合、投資家は潜在的な機会を逃したり、迫り来る失望を無視したりする可能性があります。
例えば、Alliance International Education Leasing Holdingsの財務パフォーマンスが悪いため、金融業界は最近落ち込んでいます。 1つの可能性は、P / Eが中程度であるため、投資家が近い将来に会社が大幅に改善すると考えている場合です。もしそうなら、会社が支持されていない時期に株を購入して、取得する可能性があります。
Alliance International Education Leasing Holdingsの最新の分析をご覧ください
SEHK:1563 株価収益率対業種 2023年12月23日 会社の利益、売上高、キャッシュフローの完全な情報を知りたい場合は、Alliance International Education Leasing Holdingsに関する無料レポートをご覧ください。そこで、歴史的なパフォーマンスの光を当てることができます。
P / Eに成長がマッチしている場合にのみ、Campbell SoupのようなP / Eを見ることができます。
Alliance International Education Leasing HoldingsのようなP / E比率で市場に合わせることが企業に求められるという前提があります。
それにもかかわらず、Alliance International Education Leasing HoldingsのP / Eが他の多くの企業と同じであることは興味深いことです。 P / E比率は最近の成長率がかなり限定的であることを無視して、多くの投資家が株式への露出のために払われることを望んでいるようです。これらの価格を維持することは困難であり、最近の収益トレンドが株価を最終的に圧迫する可能性があります。
Alliance International Education Leasing HoldingsのP / Eに関するまとめ
株価が穴に落ち込む中、Alliance International Education Leasing HoldingsのP / Eは現在、かなり平均的に見えます。株式の評価には欠点があると主張する人もいますが、これは強力なビジネスセンチメントインジケーターになる場合があります。
Alliance International Education Leasing Holdingsは、最近の3年間の成長が市場全体の予想より低いため、予想よりも高いP / Eで取引していることがわかりました。現在、この収益性能では長期的に好ましいセンチメントをサポートすることができないため、P / Eに不快感を抱いています。最近の中期の収益トレンドが続く場合、株主の投資は危険にさらされ、潜在的な投資家は不必要に高い価格を支払うことになるでしょう。
また、投資前に慎重に検討する必要がある重要なリスク要因があり、Alliance International Education Leasing Holdingsに対して2つの警告サインが見つかりました。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。