Investors justify GRINM Semiconductor Materials' high P/E ratio due to expected strong future growth. Shareholders are confident in future earnings, supporting the share price. However, the P/E ratio may be an inferior measure of value in some industries.
The declining ROCE and rising capital employed at GRINM Semiconductor indicate possible loss of competitive edge or market share. The trend, combined with falling revenues, is likely behind the stock's 15% decline over the past year.
Despite a modest ROE, GRINM Semiconductor Materials outshines the industry average ROE, displaying efficient use of investor's funds. Its robust earnings growth is partly due to substantial reinvestment of profits.
GRINM Semiconductor Materials Stock Forum
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