The company's conservative balance sheet suggests easy debt elimination, but decreasing EBIT could make even modest debt risky. Its ability to convert EBIT to free cash flow is less than expected, impacting its ability to pay down debt.
Despite the company's superior earnings outlook, Yechiu Metal Recycling (China)'s P/E ratio remains low, suggesting that investors may be anticipating earnings instability. The company's declining earnings and share price have likely contributed to this sentiment.
Yechiu Metal Recycling (China)'s underlying earnings power might be lower than reported, an unusual item affecting profit. Its EPS declined over the last year.
YeChiu Metal Recycling Stock Forum
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