HENGAN INT'L Stock Forum

Analysts are increasingly optimistic about Hengan International Group's earnings power, despite a drop in revenue sentiment. The company's growth is set to speed up, albeit slower than the industry average. The consensus earnings per share upgrade indicates a clear uplift in sentiment regarding the company's earnings potential next year.

Despite insiders buying up shares, future earnings are key for shareholders. The company's poor performance over the past five years suggests investors should ensure they're investing in a high-quality business.

Insiders buying at higher than current share price imply bullish outlook. Lack of insider selling and high ownership indicate aligned management incentives.

Despite leveraging a high debt to amplify returns, Hengan International Group's ROE remains low, a poor outcome. Caution: debts can increase risk and limit future options for a company, requiring a strong return. The existing ROE seems insufficient given the company's high level of debt.

Hengan's falling ROCE could indicate a mature business against new competition or shrinking margins. Despite steady capital levels, declining returns and mounting liabilities are cause for concern, potentially prompting investors to look for better opportunities elsewhere.

The research is done by the respective broker and I do not endorse any of them. Just sharing here for information and reading pleasure.
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