With a price-to-earnings (or "P/E") ratio of 12.3x Zbom Home Collection Co.,Ltd (SHSE:603801) may be sending very bullish signals at the moment, given that almost half of all companies in China have P/E ratios greater than 32x and even P/E's higher than 57x are not unusual. However, the P/E might be quite low for a reason and it requires further investigation to determine if it's justified.
Zbom Home CollectionLtd 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.
View our latest analysis for Zbom Home CollectionLtd
SHSE:603801 Price to Earnings Ratio vs Industry January 30th 2024 Keen to find out how analysts think Zbom Home CollectionLtd's future stacks up against the industry? In that case, our free report is a great place to start.
Is There Any Growth For Zbom Home CollectionLtd?
The only time you'd be truly comfortable seeing a P/E as depressed as Zbom Home CollectionLtd's is when the company's growth is on track to lag the market decidedly.
Retrospectively, the last year delivered a decent 11% gain to the company's bottom line. The latest three year period has also seen an excellent 95% overall rise in EPS, aided somewhat by its short-term performance. So we can start by confirming that the company has done a great job of growing earnings over that time.
Shifting to the future, estimates from the eleven analysts covering the company suggest earnings should grow by 19% over the next year. That's shaping up to be materially lower than the 42% growth forecast for the broader market.
In light of this, it's understandable that Zbom Home CollectionLtd's P/E sits below the majority of other companies. It seems most investors are expecting to see limited future growth and are only willing to pay a reduced amount for the stock.
The Bottom Line On Zbom Home CollectionLtd's P/E
Generally, our preference is to limit the use of the price-to-earnings ratio to establishing what the market thinks about the overall health of a company.
As we suspected, our examination of Zbom Home CollectionLtd'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.
Before you take the next step, you should know about the 1 warning sign for Zbom Home CollectionLtd that we have uncovered.
You might be able to find a better investment than Zbom Home CollectionLtd. If you want a selection of possible candidates, check out this free list of interesting companies that trade on a low P/E (but have proven they can grow earnings).
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Zbom Home Collection Co. 的市盈率(或 “市盈率”)爲12.3倍, Ltd(上海證券交易所股票代碼:603801)目前可能發出了非常看漲的信號,因爲幾乎一半的中國公司的市盈率超過32倍,甚至市盈率高於57倍也並不少見。但是,市盈率可能很低是有原因的,需要進一步調查以確定其是否合理。
Zbom Home CollectionLtd最近確實做得很好,因爲其收益增長是正的,而大多數其他公司的收益卻在倒退。一種可能性是市盈率很低,因爲投資者認爲該公司的收益將像其他所有人一樣很快下降。如果不是,那麼現有股東就有理由對股價的未來走向非常樂觀。