3SBIO Stock Forum

3SBio Inc.'s lower P/E ratio is due to its forecasted growth being less than the wider market. The potential for earnings improvement may not justify a higher P/E ratio, forming a barrier for the share price.

Despite a recent drop, 3SBio's strong financials and high ROE could boost stock value long term. Significant earnings growth due to substantial profit reinvestment, though future growth may slow.

Analyst indicates that the investment risk in 3SBio is kept in check by net cash and EBIT growth. Even though managing debt could be challenging as free cash flow was only 46% of EBIT recently, the company's financials are still strong.

3SBio, with EPS growth and increased EBIT margins, is defined as a growing business. High level of insider ownership is deemed positive, aligning with shareholders' interests. Yet, the market valuation of it remains unanalysed.

Despite positive revenue and earnings growth, 3SBio's falling share price signals potential lack of investor faith or unfulfilled market expectations.