Chongqing Zongshen Power Machinery's low P/E ratio may be due to investor concerns about underperformance. The company's declining medium-term earnings contribute to its low P/E, potentially impacting the share price.
The decreasing trend in ROCE and falling sales despite more capital being deployed in the business are concerning. Investors might be expecting the trends to reverse, but if they persist, better investments might be found elsewhere.
The company's low P/E ratio and declining earnings suggest investors expect it to underperform the market. The recent medium-term earnings decline is concerning, as the market is expected to grow by 41% next year.
Despite slower EPS growth, the market's opinion of the business has improved over the last five years. The strong momentum in share price indicates positive sentiment. However, there is a single warning sign investors should bear in mind.
Chongqing Zongshen Power MachineryLtd's unappealing ROE, lesser business reinvestment, and slow earnings growth rate questions its investment attractiveness. Market must consider if expected earnings growth is reflected in current stock price.
102884128 : getting disappointed with this counter. every day drop.