Despite positive earnings growth and expected EPS increase, the company's lower P/E ratio suggests shareholder doubt and acceptance of lower selling prices. Market-like growth and potential risks seem to pressure the P/E ratio, indicating possible future earnings volatility.
Despite good fundamentals, Changzhou Tenglong AutoPartsCo.Ltd's stock returns have been virtually flat over the last five years. The increase in current liabilities indicates the company's suppliers are effectively funding a large portion of the business.
Changzhou Tenglong AutoPartsCo.,Ltd's shrinking earnings and lower P/E ratio may drop further with inadequate profitability. Market doesn't expect enough earnings improvement to justify a higher P/E ratio, influencing the share price.
Changzhou Tenglong AutoPartsCo.Ltd's drop in ROCE hints towards an investment in growth. Despite lower short-term returns, if successful, these investments could potentially lead to significant long-term stock performance. This trend appears to be reflected in the company's 19% gain to shareholders in the past five years.
Changzhou Tenglong Auto Parts Stock Forum
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