Hualan Biological Engineering's forecast growth is lower than the wider market, coupled with a weak earnings outlook. This suggests that the share price is at risk of declining, potentially leading to a lower P/E.
The EPS decline has disappointed the market, leaving investors hesitant to buy. Shareholders face a total loss of 3% per year over five years due to the company's poor performance.
The market's past overconfidence in the company is evident in the steeper share price decline compared to the EPS slippage. Despite recent losses, the stock's 0.6% annual return over five years suggests short-term issues. Investors should monitor the company's fundamentals closely.
The company's high P/E ratio is concerning as its forecast growth is lower than the market. The current prices seem unreasonable due to predicted future earnings. Analysts lack confidence in a business prospects turnaround.
Despite earnings per share growth, the market appears pessimistic about the company, as shown by its low P/E ratio of 9.18. The company's 6.6% loss over the past twelve months wasn't as severe as the market's 24% loss. However, warning signs associated with the company should be considered in investment decisions.
The trend of decreasing ROCE and revenue despite increased capital deployment is concerning, suggesting the company may be losing its competitive advantage or market share. The stock has remained flat over the last five years, indicating investors are not impressed with these trends.
Shanghai Serum Bio-Technology's ROE and earnings retention are poor despite respectable earnings growth. High payout ratio and lower-than-average net income growth could risk the company's growth, especially in troubled times. The recent decision to pay dividends may be to impress shareholders.
Despite lower forecast growth, the company's P/E ratio aligns with most firms, suggesting investors are less bearish than analysts. However, if the P/E aligns with the growth outlook, shareholders may face disappointment. The weak earnings outlook and slower growth suggest share price risk.
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