Despite Sanlux's declining earnings, its P/E still significantly exceeds the market, indicating investor hopes for a business turnaround. However, continued negative growth rates could risk investments due to the high P/E, suggesting potential investors may be overpaying.
Given the company's dwindling earnings in light of its high P/E, some investors might find the company's stock overvalued and therefore risky. Unless the company significantly outperforms market expectations, continued deterioration in earnings could pressurize the inflated share price.
Lower returns by SanluxLtd on same capital is not indicative of growth. A lack of growth in past five years can discourage potential investors until metrics improve.
Sanlux Co.,Ltd. Stock Forum
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