YIHAI INTL Stock Forum

Yihai International's high P/E ratio is alarming considering its below-market predicted growth. The bullish sentiment of investors may not last, posing a risk to shareholders and potential investors who might pay a hefty premium. The company's future should be assessed beyond just the P/E ratio.

Yihai International's share price bounce is expected after a significant drop, but slower EPS reduction compared to the share price reduction likely disappointed investors. The company's poor performance last year may indicate unresolved challenges.

Despite Yihai International's limited growth expectations, investors are willing to pay a premium for the stock, potentially setting themselves up for future disappointment if the P/E falls to levels more in line with the growth outlook.

The decline in Yihai's EPS and stock value indicates a past over-optimism from investors. Considering the persistent weakness in share price, there may be ongoing challenges; however, it could present a turnaround opportunity for contrarian investors.

Yihai International Holding's dwindling ROCE raises concerns. Despite reinvestment, returns diminish with investments appearing as longer-term gambits. Thus, the stock lacks traits of a future multi-bagger.