SAMSONITE Stock Forum

Samsonite International's statutory profits may be inflated due to unusual items. Future profitability could be weaker without these items or business growth. Consider the risks, including identified warning signs.

The company's moderate P/E ratio may reflect investor anticipation of less robust future earnings. Despite a forecast of shrinking earnings, the P/E isn't as affected as expected, posing a risk of share price drop and potential overpayment by investors due to the bleak outlook and negative growth prediction.

With projected negative profit growth, investors may hesitate despite undervaluation suggesting a buying opportunity. The high risk of negative growth prospects calls for detailed research and careful consideration of identified risks.

Samsonite International appears to be getting proficient at generating returns as it manages to increase its ROCE without needing additional investments. This underlying trend is positive and may indicate a promising future, subject to valuations and other metrics.

Though Samsonite International's past profitability points to strong business growth, the recent dip in share prices and potential investment risks could pose challenges to the stock's performance.