Despite a price surge, the company's P/E ratio may not be justified due to poor earnings. Its medium-term earnings trajectory doesn't align with the market's one-year expansion forecast of 41%. Shareholders could face disappointment if the P/E aligns with recent negative growth rates.
Jiangsu Lidao New Materials' declining ROCE trend is concerning. The market reflects this pessimism with a 21% stock loss over five years. The company doesn't show multi-bagger stock traits.
Despite Jiangsu Lidao New Materials' falling price and earnings, its high P/E ratio suggests investor optimism. However, with recent earnings decline and expected market growth of 42%, the high P/E ratio is concerning and current prices may not be sustainable.
Jiangsu Lidao's failure to convert profits to FCF could concern investors. Its decreased EPS suggests that its statutory profits might be better than underlying earnings power. Analysts recommend further scrutiny of the company's earnings and margins, along with forecast growth and return on investment. The firm has 4 warning signs warranting investor focus.
Jiangsu Lidao New Material Stock Forum
No comment yet