Investors are holding onto Anhui Korrun shares due to its promising future earnings outlook. The potential for a deterioration in earnings isn't seen as great enough to justify a lower P/E ratio.
Anhui Korrun's declining ROCE and stagnant sales despite reinvestment for growth do not inspire confidence. The stock's 61% fall in the last five years indicates investor skepticism about future trends.
Despite Anhui Korrun's positive earnings growth, its P/E ratio aligns with the market, indicating shareholder skepticism. Future earnings may face volatility, with potential unseen threats preventing the P/E ratio from reflecting the positive outlook.
The market overestimated the stock, with EPS reduction less than the annual share price drop. Returns have worsened over the past year. Investors should consider market conditions and risks. Anhui Korrun has 1 warning sign to note.
Anhui Korrun Stock Forum
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