Eagers Automotive Limited's (ASX:APE) Low P/E No Reason For Excitement

Simply Wall St.12-12

When close to half the companies in Australia have price-to-earnings ratios (or "P/E's") above 21x, you may consider Eagers Automotive Limited (ASX:APE) as an attractive investment with its 12x P/E ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2490810382?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/industry/9551705-choice2-main-header/1585186844427","is_english":true,"pubTime":"2024-12-12 04:27","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2490810382","market":"nz","top_or_hot":-1,"title":"Eagers Automotive Limited's (ASX:APE) Low P/E No Reason For Excitement","media":"Simply Wall St.","content":"<div>\n<p>When close to half the companies in Australia have price-to-earnings ratios (or \"P/E's\") above 21x, you may consider Eagers Automotive Limited (ASX:APE) as an attractive investment with its 12x P/E ...</p>\n\n<a href=\"https://simplywall.st/stocks/au/retail/asx-ape/eagers-automotive-shares/news/eagers-automotive-limiteds-asxape-low-pe-no-reason-for-excit\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Eagers Automotive Limited's (ASX:APE) Low P/E No Reason For Excitement</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nEagers Automotive Limited's (ASX:APE) Low P/E No Reason For Excitement\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-12 04:27 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/au/retail/asx-ape/eagers-automotive-shares/news/eagers-automotive-limiteds-asxape-low-pe-no-reason-for-excit><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>When close to half the companies in Australia have price-to-earnings ratios (or \"P/E's\") above 21x, you may consider Eagers Automotive Limited (ASX:APE) as an attractive investment with its 12x P/E ...</p>\n\n<a href=\"https://simplywall.st/stocks/au/retail/asx-ape/eagers-automotive-shares/news/eagers-automotive-limiteds-asxape-low-pe-no-reason-for-excit\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4108","symbol_name":"电影和娱乐","start_time":0,"source_url":"https://simplywall.st/stocks/au/retail/asx-ape/eagers-automotive-shares/news/eagers-automotive-limiteds-asxape-low-pe-no-reason-for-excit","article_id":"2490810382","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/9551705-choice2-main-header/1585186844427"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2490810382","pubTimestamp":1733948847,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"When close to half the companies in Australia have price-to-earnings ratios (or \"P/E's\") above 21x, you may consider...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4108":"电影和娱乐","BK7143":"汽车零售","APE":"AMC Entertainment Preferred","APE.AU":"Eagers Automotive Ltd"},"translate_title":"Eagers Automotive Limited(ASX：APE)的低市盈率没有理由感到兴奋","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"APE":1,"APE.AU":1},"content_text":"When close to half the companies in Australia have price-to-earnings ratios (or \"P/E's\") above 21x, you may consider Eagers Automotive Limited (ASX:APE) as an attractive investment with its 12x P/E ratio.  Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the reduced P/E.     Eagers Automotive hasn't been tracking well recently as its declining earnings compare poorly to other companies, which have seen some growth on average.   The P/E is probably low because investors think this poor earnings performance isn't going to get any better.  If this is the case, then existing shareholders will probably struggle to get excited about the future direction of the share price.     Check out our latest analysis for Eagers Automotive ASX:APE Price to Earnings Ratio vs Industry December 11th 2024 Keen to find out how analysts think Eagers Automotive's future stacks up against the industry? In that case, our free report is a great place to start.  What Are Growth Metrics Telling Us About The Low P/E?   The only time you'd be truly comfortable seeing a P/E as low as Eagers Automotive's is when the company's growth is on track to lag the market.   Retrospectively, the last year delivered a frustrating 6.2% decrease to the company's bottom line.   The last three years don't look nice either as the company has shrunk EPS by 25% in aggregate.  Accordingly, shareholders would have felt downbeat about the medium-term rates of earnings growth.     Looking ahead now, EPS is anticipated to climb by 1.8% per year during the coming three years according to the analysts following the company.  With the market predicted to deliver 19% growth  each year, the company is positioned for a weaker earnings result.  With this information, we can see why Eagers Automotive is trading at a P/E lower than the market.  It seems most investors are expecting to see limited future growth and are only willing to pay a reduced amount for the stock.    What We Can Learn From Eagers Automotive's P/E?  Using the price-to-earnings ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects.  As we suspected, our examination of Eagers Automotive's analyst forecasts revealed that its inferior earnings outlook is contributing to its low P/E.  At this stage investors feel the potential for an improvement in earnings isn't great enough to justify a higher P/E ratio.  It's hard to see the share price rising strongly in the near future under these circumstances.      There are also other vital risk factors to consider and we've discovered 2 warning signs for Eagers Automotive (1 is a bit unpleasant!) that you should be aware of before investing here.   Of course, you might find a fantastic investment by looking at a few good candidates. So take a peek at this free list of companies with a strong growth track record, trading on a low P/E.  Valuation is complex, but we're here to simplify it.Discover if Eagers Automotive might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.4","shortVersion":"4.29.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2490810382"}