The company's average ROE and high debt usage introduce extra risk and limit future options. The low ROE and significant debt usage make the business less appealing currently.
Zhejiang Construction Investment GroupLtd's low P/E ratio is due to declining earnings. Shareholders accept this, acknowledging future earnings may not surprise positively. If medium-term conditions don't improve, they'll form a share price barrier.
Zhejiang Construction Investment Group's low ROE isn't very attractive relative to its high debt usage. Remember, ROE is not the only metric for business quality; profit growth and required investment also matter.
Zhejiang Construction Investment Group Stock Forum
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