Easyhome New Retail Group Corporation Limited's (SZSE:000785) price-to-earnings (or "P/E") ratio of 14.2x might make it look like a strong buy right now compared to the market in China, where around half of the companies have P/E ratios above 30x and even P/E's above 55x 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 so limited.
With earnings that are retreating more than the market's of late, Easyhome New Retail Group has been very sluggish. It seems that many are expecting the dismal earnings performance to persist, which has repressed the P/E. You'd much rather the company wasn't bleeding earnings if you still believe in the business. Or at the very least, you'd be hoping the earnings slide doesn't get any worse if your plan is to pick up some stock while it's out of favour.
SZSE:000785 Price to Earnings Ratio vs Industry March 8th 2024 Keen to find out how analysts think Easyhome New Retail Group's future stacks up against the industry? In that case, our free report is a great place to start.
Does Growth Match The Low P/E?
There's an inherent assumption that a company should far underperform the market for P/E ratios like Easyhome New Retail Group's to be considered reasonable.
Retrospectively, the last year delivered a frustrating 41% decrease to the company's bottom line. As a result, earnings from three years ago have also fallen 30% overall. Accordingly, shareholders would have felt downbeat about the medium-term rates of earnings growth.
Shifting to the future, estimates from the nine analysts covering the company suggest earnings should grow by 49% over the next year. That's shaping up to be materially higher than the 41% growth forecast for the broader market.
With this information, we find it odd that Easyhome New Retail Group is trading at a P/E lower than the market. It looks like most investors are not convinced at all that the company can achieve future growth expectations.
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.
Our examination of Easyhome New Retail Group's analyst forecasts revealed that its superior earnings outlook isn't contributing to its P/E anywhere near as much as we would have predicted. 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.
Don't forget that there may be other risks. For instance, we've identified 3 warning signs for Easyhome New Retail Group that you should be aware of.
If you're unsure about the strength of Easyhome New Retail Group's 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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Easyhome New Retail Group Corporation Limited(SZSE:000785)の利益率(P/E比)14.2倍は中国市場に比べて現在は強気の買いと見られるかもしれません。中国市場の約半数の企業がP/E比30倍を超え、P/E比55倍以上が一般的であるのに対してです。ただし、P/E比だけを顔値で見るのは賢明ではありません。P/E比がこれほど制限されている理由があるかもしれないためです。
Easyhome New Retail Groupの利益が市場に比べて最近下落しているため、極めて低迷しています。多くの人々が、利益の落ち込みが続くことを予想しており、それがP/E比を抑圧しているようです。もしビジネスに信頼を置いているならば、業績の悪化を望むことはできません。また、株式が好調ではない時に株式を購入する計画がある場合、業績の下落がさらに悪化しないことを望むでしょう。
SZSE:000785 株価収益率対業界 2024年3月8日Easyhome New Retail Groupの将来の見通しを業界と比較するアナリストの意見を知りたいですか?その場合、無料レポートが非常に役立ちます。
低P/E比に成長がマッチしているか?
Easyhome New Retail GroupのP/E比が合理的と考えられるには、同社が市場に比べて遥かに悪い業績を示さなければならないという内在的な前提があります。
Easyhome New Retail Groupのアナリスト予測を調査したところ、同社の優れた利益見通しがP/E比に寄与している程度は予想よりもはるかに低いことが判明しました。利益に影響を与える重大な未知の脅威が存在する可能性があります。少なくとも、株価リスクは非常に低く、投資家は将来の利益に相当な変動がある可能性があると考えています。
その他のリスクに注意することを忘れないでください。たとえば、Easyhome New Retail Groupのリスクを警告する要因が3つあることが特定されていることを忘れないでください。
Easyhome New Retail Groupのビジネスの強さに自信がない場合は、見落としてしまった他の企業のビジネスの基本的な要素を備えた株式のインタラクティブリストを探索してみることをお勧めします。
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。