The company's low ROE and flat earnings growth over the past five years are concerning. Despite high profit retention, the low return rate is likely hampering growth. The company's determination to pay dividends even if it means little to no earnings growth is also noted.
The decreasing trend in Tederic Machinery's ROCE and the lack of significant sales growth despite increased capital investment may not make it a potential multi-bagger. Investors are likely accounting for this in the stock's modest five-year gain.
Despite shrinking earnings, Tederic Machinery's P/E ratio remains stable, risking potential share price decline. Investors overlook poor growth, hoping for a turnaround. Continuation of recent earnings trends could risk shareholder investments and lead to unnecessary stock premium.
Tederic Machinery Stock Forum
No comment yet