Despite strong earnings growth, the company's medium-term trajectory is less attractive compared to the market's one-year forecast. Shares trade at a P/E similar to the market, suggesting less bearish investor sentiment. However, continued medium-term trends could risk shareholder investments and potential investors may pay an unnecessary premium.
The declining ROCE trend for EST Tools, despite increased capital employed, is worrisome. Investors remain hopeful, as seen in the stock's gain over the past five years. However, if trends persist, it's unlikely to be a multi-bagger going forward.
Est Tools Co., Ltd. Stock Forum
No comment yet