Those holding Meilleure Health International Industry Group Limited (HKG:2327) shares would be relieved that the share price has rebounded 46% in the last thirty days, but it needs to keep going to repair the recent damage it has caused to investor portfolios. Unfortunately, the gains of the last month did little to right the losses of the last year with the stock still down 26% over that time.
After such a large jump in price, Meilleure Health International Industry Group's price-to-earnings (or "P/E") ratio of 18.1x might make it look like a strong sell right now compared to the market in Hong Kong, where around half of the companies have P/E ratios below 9x and even P/E's below 5x are quite common. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the highly elevated P/E.
Recent times have been quite advantageous for Meilleure Health International Industry Group as its earnings have been rising very briskly. It seems that many are expecting the strong earnings performance to beat most other companies over the coming period, which has increased investors' willingness to pay up for the stock. You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason.
SEHK:2327 Price to Earnings Ratio vs Industry May 21st 2024 We don't have analyst forecasts, but you can see how recent trends are setting up the company for the future by checking out our free report on Meilleure Health International Industry Group's earnings, revenue and cash flow.
How Is Meilleure Health International Industry Group's Growth Trending?
In order to justify its P/E ratio, Meilleure Health International Industry Group would need to produce outstanding growth well in excess of the market.
Taking a look back first, we see that the company grew earnings per share by an impressive 130% last year. Still, incredibly EPS has fallen 49% in total from three years ago, which is quite disappointing. Therefore, it's fair to say the earnings growth recently has been undesirable for the company.
Comparing that to the market, which is predicted to deliver 20% growth in the next 12 months, the company's downward momentum based on recent medium-term earnings results is a sobering picture.
In light of this, it's alarming that Meilleure Health International Industry Group's P/E sits above the majority of other companies. Apparently many investors in the company are way more bullish than recent times would indicate and aren't willing to let go of their stock at any price. Only the boldest would assume these prices are sustainable as a continuation of recent earnings trends is likely to weigh heavily on the share price eventually.
The Key Takeaway
The strong share price surge has got Meilleure Health International Industry Group's P/E rushing to great heights as well. Using the price-to-earnings ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects.
Our examination of Meilleure Health International Industry Group revealed its shrinking earnings over the medium-term aren't impacting its high P/E anywhere near as much as we would have predicted, given the market is set to grow. When we see earnings heading backwards and underperforming the market forecasts, we suspect the share price is at risk of declining, sending the high P/E lower. Unless the recent medium-term conditions improve markedly, it's very challenging to accept these prices as being reasonable.
You should always think about risks. Case in point, we've spotted 4 warning signs for Meilleure Health International Industry Group you should be aware of, and 2 of them don't sit too well with us.
If you're unsure about the strength of Meilleure Health International Industry Group's business, why not explore our interactive list of stocks with solid business fundamentals for some other companies you may have missed.
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.
持有Meilleure Health International Industry Group Limited (HKG:2327)股票的人可以鬆一口氣了,因爲股價在過去的30天裏反彈了46%,但仍需繼續上揚以修復最近破壞投資組合的損失。不幸的是,過去一個月的收益無法彌補過去一年的損失,股價仍下跌26%。
在價格大幅上漲之後,Meilleure Health International Industry Group的市盈率(或“P / E”)達到18.1倍,與香港市場相比看起來似乎是強烈的賣出,香港市場的大約一半公司的市盈率低於9x,甚至低於5x的市盈率都很常見。儘管如此,我們需要深入挖掘,以判斷這種高度抬高的市盈率是否有合理的基礎。
最近的時期對Meilleure Health International Industry Group而言相當有利,因爲其收入一直在飛速增長。似乎許多人都希望這種強勁的收益表現能夠在未來一段時間內擊敗大多數其他公司,這增加了投資者購買該股票的意願。你確實希望如此,否則你會爲沒有明顯原因付出相當高的代價。
SEHK:2327市盈率與行業比較2024年5月21日我們沒有分析師預測,但您可以查看我們有關Meilleure Health International Industry Group收益,營收和現金流的免費報告,了解近期趨勢如何爲公司的未來做好準備。
Meilleure Health International Industry Group的增長趨勢如何?
爲了證明其市盈率的合理性,Meilleure Health International Industry Group需要產生遠高於市場的傑出增長。
鑑於此,讓人擔憂的是,Meilleure Health International Industry Group的市盈率高於大多數其他公司。顯然,該公司的許多投資者比最近的情況更看好該公司,並且不願以任何價格放手股票。只有最勇敢的人會認爲這些價格是可持續的,因爲近期收益趨勢的繼續很可能對股價產生沉重的壓力。
重要提示
強勁的股價飆升也將Meilleure Health International Industry Group的市盈率推至極高水平。僅使用市盈率來判斷是否應該賣出股票並不明智,但它可以作爲公司未來前景的實用指南。
我們對Meilleure Health International Industry Group的調查顯示,儘管市場將增長,其中期內收益下降沒有像我們預計的那樣嚴重影響其高市盈率。當我們看到收益倒退並低於市場預測時,我們懷疑股價可能面臨下跌風險,從而將高市盈率降低。除非最近中期條件顯著改善,否則很難接受這些價格是合理的。
你應該始終考慮風險。例如,我們已經發現Meilleure Health International Industry Group的4個警告信號,你應該知道,其中有2個我們不太滿意。
如果您對Meilleure Health International Industry Group的業務實力不確定,爲什麼不探索我們的交互式股票列表,查看具有穩健業務基礎的其他公司。