Price Earnings Ratio (or “P/E”) 4.3x Poh Huat Resources Holdings Berhad (KLSE:POHUAT) sends a very bullish signal at the moment considering almost half of all companies in Malaysia have P/E ratios above 14x, and P/Es above 23x are not uncommon There is a possibility that However, it is unwise to take the P/E at face value.
Poh Huat Resources Holdings Berhad is doing relatively well with better revenue growth than most other companies these days. Many expect a significant deterioration in the strong earnings performance, which may be driving down the P/E ratio. If you like the company, you’re hoping it doesn’t.
Read the latest analysis from Poh Huat Resources Holdings Berhad.
Want the full picture of the company’s analyst forecasts? freedom Our report on Poh Huat Resources Holdings Berhad helps illuminate what lies on the horizon.
What growth indicators indicate a low PER?
Poh Huat Resources Holdings Berhad’s P/E ratio is typical of a company expected to see very low growth or declining earnings and, importantly, far worse than the market It’s a thing.
Looking back, last year brought an extraordinary 161% return to the company’s net income. Happily, EPS is also up 38% in total from his three years ago, thanks to growth over the past 12 months. So you can start by making sure the company has done a great job growing revenue in the meantime.
EPS is projected to decline 33% over the next year, according to three analysts who follow the company. The broader market, on the other hand, is forecast to grow by 8.7%, which points to a bad picture.
With this information, it is no surprise that Poh Huat Resources Holdings Berhad is trading at a lower P/E than the market. However, shrinking earnings are unlikely to translate into stable P/E over the long term. Even holding these prices alone can be difficult to achieve as the weak outlook weighs on the stock.
Poh Huat Resources Holdings Berhad P/E conclusion
Price-to-earnings ratios claim to be an inferior measure of value in certain industries, but they can be powerful indicators of business sentiment.
As we suspected, an examination of analyst forecasts for Poh Huat Resources Holdings Berhad reveals that earnings prospects are contributing to the low P/E ratio. At this stage, investors feel the earnings potential is not great enough to justify a higher P/E ratio. Under these circumstances, it is hard to imagine that stock prices will rise significantly in the near future.
Before proceeding to the next step, you should know: Three warning signs for Poh Huat Resources Holdings Berhad (1 is a concern!) That’s what we made clear.
in these cases Risks require reconsideration of opinion on Poh Huat Resources Holdings Berhadexplore an interactive list of high-quality stocks to find out what else is out there.
Do you have feedback on this article? What interests you? contact directly with us. Or send an email to our editorial team (at) Simplywallst.com.
This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst projections using only unbiased methodologies and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. We aim to deliver long-term focused analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Is not …
Participate in Paid User Research Sessions
you $30 USD Amazon Gift Card An hour of your time while helping build better investment tools for individual investors like you.SIGN UP HERE