With a price-to-earnings (or "P/E") ratio of 8.9x Ping An Insurance (Group) Company of China, Ltd. (SHSE:601318) may be sending very bullish signals at the moment, given that almost half of all companies in China have P/E ratios greater than 28x and even P/E's higher than 52x are not unusual. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the highly reduced P/E.
While the market has experienced earnings growth lately, Ping An Insurance (Group) Company of China's earnings have gone into reverse gear, which is not great. The P/E is probably low because investors think this poor earnings performance isn't going to get any better. If you still 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.
SHSE:601318 Price to Earnings Ratio vs Industry July 6th 2024 If you'd like to see what analysts are forecasting going forward, you should check out our free report on Ping An Insurance (Group) Company of China.
How Is Ping An Insurance (Group) Company of China's Growth Trending?
Ping An Insurance (Group) Company of China'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.
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 33%. This means it has also seen a slide in earnings over the longer-term as EPS is down 43% in total over the last three years. Therefore, it's fair to say the earnings growth recently has been undesirable for the company.
Turning to the outlook, the next three years should generate growth of 18% per year as estimated by the analysts watching the company. With the market predicted to deliver 24% growth per year, the company is positioned for a weaker earnings result.
In light of this, it's understandable that Ping An Insurance (Group) Company of China'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.
What We Can Learn From Ping An Insurance (Group) Company of China's 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.
As we suspected, our examination of Ping An Insurance (Group) Company of China'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.
There are also other vital risk factors to consider before investing and we've discovered 1 warning sign for Ping An Insurance (Group) Company of China that you should be aware of.
If these risks are making you reconsider your opinion on Ping An Insurance (Group) Company of China, explore our interactive list of high quality stocks to get an idea of what else is out there.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
中国のPing An Insurance (Group) Company of China, Ltd.(SHSE:601318)は、P / E比率が8.9xであるため、現時点では非常に強気のシグナルを送っているかもしれません。中国のほぼ半数の企業がP / E比率が28倍を超え、52倍を超えるP / Eでさえ珍しくありません。それにもかかわらず、高度に低下したP / Eに合理的な根拠があるかどうかを判断するには、少し掘り下げる必要があります。
市場は最近、EPSの成長を経験していますが、Ping An Insurance (Group) Company of ChinaのEPSは逆転しており、これは良いことではありません。投資家がこの低いEPSのパフォーマンスが改善されないと考えているため、P / Eが低い可能性が高いです。会社が好きなら、株式が不人気の間にいくつかの株式を取得できる可能性があることを望みます。
SHSE:601318 株価収益率比較(2024年7月6日現在) 業種全セクターアナリストが今後予測していることを見たい場合は、中国Ping An Insurance (Group) Companyに関する無料レポートをご覧ください。
Ping An Insurance (Group) Company of Chinaの成長はどのように推移しているのでしょうか?
Ping An Insurance (Group) Company of ChinaのP / E比率は、非常に低い成長または減少するEPSを提供することが期待される企業に典型的であり、重要なことは、市場よりもはるかに劣ったパフォーマンスを発揮することです。
私たちが疑っていたように、Ping An Insurance (Group) Company of Chinaのアナリスト予測を調べたところ、低いEPSの見通しがP / E低下に寄与していることがわかりました。現時点では、投資家は、収益性の向上の可能性が十分ではないため、より高いP / E比率を正当化することができません。これらの状況下では、株価が強く上昇することは困難です。
投資する前に検討すべき重要なリスク要因もあり、Ping An Insurance (Group) Company of Chinaの1つの警告サインを発見しました。
これらのリスクがあなたのPing An Insurance (Group) Company of Chinaに対する意見を再考させている場合は、高品質株をインタラクティブリストで探索して、他に何があるかを考えてみてください。
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。