Xinhuanet Co., Ltd. Stock Forum

Despite Xinhuanet's share price drop, its high P/E ratio could be worrying. The recent earnings growth may not sustain the high P/E ratio. Without significant medium-term improvements, current prices may not hold.

Xinhuanet's declining ROCE and lack of capital growth suggest a business in decline. Despite an 82% return over five years, current fundamentals advise caution for potential investors.

Current focus on revenue growth over EPS growth might mean Xinhuanet isn't the best for profit. CEO's pay is comparatively modest and stock's performance is due to dividends, not growth.

The company's lowering ROE is causing concerns about performance and negative earnings growth. Investors are advised to consider the business risk profile.