COSCO SHIP PORT Stock Forum

COSCO SHIPPING Ports' low P/E ratio is due to its poor earnings outlook. Investors believe the earnings improvement potential doesn't warrant a higher P/E ratio. These conditions form a barrier for the share price at these levels.

The market's previous optimism about the stock is reflected in its current P/E ratio of 7.26. Despite modest CEO remuneration, the company's future earnings growth is questionable. The long-term share price performance should be considered with other potential warning signs for the company.

Given the company's below-market growth expectations and recent earnings history, the current P/E ratio might not be supported by future earnings, increasing the possibility of future disappointment for investors.

With COSCO SHIPPING Ports' price factoring in future growth and above industry multiples, it might not be the ideal time to buy. Investors believing it should trade below current value may consider selling high and buying back when price falls towards industry PE ratio.

COSCO SHIPPING Ports has been reinvesting capital and generating the same low rate of return as before, indicating ineffective investments. Given the flat ROCE trend and falling stock price, investors may not be optimistic about trends improving.