AXIS Capital Holdings Limited's (NYSE:AXS) price-to-earnings (or "P/E") ratio of 8.9x might make it look like a buy right now compared to the market in the United States, where around half of the companies have P/E ratios above 17x and even P/E's above 32x are quite common. Although, it's not wise to just take the P/E at face value as there may be an explanation why it's limited.
AXIS Capital Holdings 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. One possibility is that the P/E is low because investors think the company's earnings are going to fall away like everyone else's soon. If not, then existing shareholders have reason to be quite optimistic about the future direction of the share price.
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Does Growth Match The Low P/E?
In order to justify its P/E ratio, AXIS Capital Holdings would need to produce sluggish growth that's trailing the market.
If we review the last year of earnings growth, the company posted a terrific increase of 54%. However, the latest three year period hasn't been as great in aggregate as it didn't manage to provide any growth at all. Accordingly, shareholders probably wouldn't have been overly satisfied with the unstable medium-term growth rates.
Looking ahead now, EPS is anticipated to climb by 23% per annum during the coming three years according to the six analysts following the company. That's shaping up to be materially higher than the 13% per year growth forecast for the broader market.
With this information, we find it odd that AXIS Capital Holdings is trading at a P/E lower than the market. Apparently some shareholders are doubtful of the forecasts and have been accepting significantly lower selling prices.
The Final Word
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 AXIS Capital Holdings currently trades on a much lower than expected P/E since its forecast growth is higher than the wider market. There could be some major unobserved threats to earnings preventing the P/E ratio from matching the positive outlook. At least price risks look to be very low, but investors seem to think future earnings could see a lot of volatility.
The company's balance sheet is another key area for risk analysis. Our free balance sheet analysis for AXIS Capital Holdings with six simple checks will allow you to discover any risks that could be an issue.
If you're unsure about the strength of AXIS Capital 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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AXIS Capital Holdings Limited(NYSE:AXS)のP/E比率(あるいは「P/E」)は、8.9倍となっており、アメリカ市場の約半数の企業が17倍以上、さらに32倍以上のP/E比率を有する中、現在買うべき株と思われる可能性があります。ただし、P/E比率だけで判断してはいけません。制限されている理由があるかもしれないためです。
最近、AXIS Capital Holdingsは、他社の業績が後退する中で収益成長がプラスという好業績を見せています。P/E比率が低いのは、投資家が同社の収益が、近い将来においても誰もが後退しそうであると考えているためかもしれません。もし、そうでない場合は、既存株主は将来の株価上昇に対してかなり楽観的な理由があります。
AXIS Capital Holdingsの最新の分析はこちらをご覧ください
当社のAXIS Capital Holdingsに関する無料レポートでは、企業に対するアナリストの見通しを全部解説しています。
P/E比率と成長は一致するか?
P/E比率を正当化するためには、AXIS Capital Holdingsの成長が市場を下回るような遅い成長を生み出さなければなりません。
AXIS Capital Holdingsは、市場予測成長率が拡大しているため、現在予想よりも大幅に低いP/E比率で取引されていることが明らかになりました。しかし、どのような理由がP/E比率とポジティブな見通しを一致させていないのか、という疑問も出てきます。少なくとも、価格リスクは非常に低く、将来の収益がかなり変動する可能性があると投資家が考えているようです。
同社の財務諸表は、リスク分析の別の重要な領域です。当社のAXIS Capital Holdingsに関する無料の財務諸表分析によって、問題になる可能性のあるリスクを発見できます。
AXIS Capital Holdingsのビジネスの強さに自信が持てない場合は、見逃してしまった他の企業の強固なビジネス基盤を持つ株式のインタラクティブなリストを探索することができます。
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。
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。