Jiuzhitang Co.,Ltd. Stock Forum

Despite Jiuzhitang's recent earnings drop, its P/E ratio aligns with the market, indicating investors' continued support. However, the share price may face further decline due to weaker market growth and earnings decline. The current P/E ratio may not be justified unless medium-term conditions improve.

The 12% share price fall isn't as bad as the EPS reduction, hinting that the weak EPS wasn't as feared. Despite short-term loss, the stock returned 1.9% yearly over five years, suggesting temporary issues. Investors should monitor Jiuzhitang's fundamentals, as our analysis shows 2 warning signs.

Jiuzhitang's performance is disappointing, particularly its ROE and lack of reinvestment into the business, resulting in unsatisfactory earnings growth. The company's high payout ratio suggests a potential risk.

Investors might be overlooking Jiuzhitang's modest growth, paying a risky premium. If recent earnings trends persist, shareholders could be at risk and potential buyers face danger of high premium.

Market participants' rising confidence in Jiuzhitang, indicated by EPS growth rate being lower than average annual share price increase, signifies a business improvement over time leading to a stock re-rating.

Jiuzhitang's financial prospects seem unfavorable due to below average ROE and negative earnings growth trend. High dividend payout, surpassing reported profits, and a steady payout policy could pressure resources.