does pangaea logistics solutions, ltd.\'s (nasdaq:panl) p/e ratio signal a buying opportunity?
We will conduct a basic price-earnings ratio analysis of pan-continental Logistics Solutions Co. , Ltd. \'s (NASDAQ:PANL)
To help you decide if the stock is worth further research.
The P/E ratio of Pangu logistics solution is 8.
Based on the past 12 months.
This is equivalent to a yield of about 12%.
Check out our latest analysis of Pangu logistics solutions. The formula for price to income is: price to income is fast and impressive.
Earnings per share have increased by 42% per year over the past three years.
Therefore, we absolutely hope that it will have a relatively high p/e ratio.
It is worth noting that the price-earnings ratio takes into account the market value, not the enterprise value.
Therefore, it does not reflect the advantages of cash or the disadvantages of debt.
In theory, enterprises can increase their income (
And produce lower P/E in the future)
Growth through investment.
This means taking on the debt (
Or in cash).
Growth spending may be good or bad after a few years, but the problem is that the P/E ratio does not take this option into account (Or missing).
The net debt of the rafting logistics solution is equivalent to 35% of its market value.
While it is worth remembering this, it is not a concern.
The P/E of the boating logistics solution is 8. 5.
This is lower than the average in the US market, or 17. 4.
The company did not expand its balance sheet and made good profits last year.
The low p/e ratio shows that the current market expectations are depressed, which means that these growth levels will not continue.
When the market\'s expectations of stocks are wrong, investors have a chance.
If it undervalues a company, investors can make money by buying and holding shares until the market is self-correcting.
As a result, this free visual report on analyst forecasts may be key to making excellent investment decisions.
Of course, by looking at a few good candidates, you may find a great investment.
So, look at this free list of companies. or no)
Debt, traded at a price-earnings ratio of less than 20.
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Term focus research analysis driven by basic data.
Please note that our analysis may not take into account the latest prices
Sensitive company announcements or qualitative materials.
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Team @ simplywallst. com.
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