There's No Escaping Stanmore Resources Limited's (ASX:SMR) Muted Earnings

Simply Wall St.12-15

When close to half the companies in Australia have price-to-earnings ratios (or "P/E's") above 21x, you may consider Stanmore Resources Limited (ASX:SMR) as a highly attractive investment with its 6.6...

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/2491428511?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/industry/2052001-choice1-main-header/1585186931882","is_english":true,"pubTime":"2024-12-15 06:02","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2491428511","market":"us","top_or_hot":-1,"title":"There's No Escaping Stanmore Resources Limited's (ASX:SMR) Muted Earnings","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 Stanmore Resources Limited (ASX:SMR) as a highly attractive investment with its 6.6...</p>\n\n<a href=\"https://simplywall.st/stocks/au/materials/asx-smr/stanmore-resources-shares/news/theres-no-escaping-stanmore-resources-limiteds-asxsmr-muted\">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>There's No Escaping Stanmore Resources Limited's (ASX:SMR) Muted Earnings</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\">\nThere's No Escaping Stanmore Resources Limited's (ASX:SMR) Muted Earnings\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-15 06:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/au/materials/asx-smr/stanmore-resources-shares/news/theres-no-escaping-stanmore-resources-limiteds-asxsmr-muted><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 Stanmore Resources Limited (ASX:SMR) as a highly attractive investment with its 6.6...</p>\n\n<a href=\"https://simplywall.st/stocks/au/materials/asx-smr/stanmore-resources-shares/news/theres-no-escaping-stanmore-resources-limiteds-asxsmr-muted\">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":"SMR","symbol_name":"NuScale Power","start_time":0,"source_url":"https://simplywall.st/stocks/au/materials/asx-smr/stanmore-resources-shares/news/theres-no-escaping-stanmore-resources-limiteds-asxsmr-muted","article_id":"2491428511","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/2052001-choice1-main-header/1585186931882"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2491428511","pubTimestamp":1734213724,"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":["earning"],"viewcount":null,"language":"en","relate_stocks":{"SMR":"NuScale Power","SMR.AU":"STANMORE RESOURCES LTD"},"translate_title":"Stanmore Resources Limited(ASX：SMR)盈利低迷是不可避免的","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SMR":1,"SMR.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 Stanmore Resources Limited (ASX:SMR) as a highly attractive investment with its 6.6x P/E ratio.  However, the P/E might be quite low for a reason and it requires further investigation to determine if it's justified.     While the market has experienced earnings growth lately, Stanmore Resources' earnings have gone into reverse gear, which is not great.   It seems that many are expecting the dour earnings performance to persist, which has repressed the P/E.  If you still like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's out of favour.     Check out our latest analysis for Stanmore Resources ASX:SMR Price to Earnings Ratio vs Industry December 14th 2024 If you'd like to see what analysts are forecasting going forward, you should check out our free report on Stanmore Resources.  What Are Growth Metrics Telling Us About The Low P/E?   In order to justify its P/E ratio, Stanmore Resources would need to produce anemic growth that's substantially trailing the market.   Taking a look back first, the company's earnings per share growth last year wasn't something to get excited about as it posted a disappointing decline of 66%.   Unfortunately, that's brought it right back to where it started three years ago with EPS growth being virtually non-existent overall during that time.  Accordingly, shareholders probably wouldn't have been overly satisfied with the unstable medium-term growth rates.     Turning to the outlook, the next three years should bring diminished returns, with earnings decreasing 17%  per year as estimated by the four analysts watching the company.  With the market predicted to deliver 19% growth  each year, that's a disappointing outcome.  In light of this, it's understandable that Stanmore Resources' P/E would sit below the majority of other companies.  Nonetheless, there's no guarantee the P/E has reached a floor yet with earnings going in reverse.  There's potential for the P/E to fall to even lower levels if the company doesn't improve its profitability.    The Final Word  Typically, we'd caution against reading too much into price-to-earnings ratios when settling on investment decisions, though it can reveal plenty about what other market participants think about the company.  We've established that Stanmore Resources maintains its low P/E on the weakness of its forecast for sliding earnings, as expected.  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.     Before you settle on your opinion, we've discovered 3 warning signs for Stanmore Resources (1 makes us a bit uncomfortable!) that you should be aware of.   It's important to make sure you look for a great company, not just the first idea you come across. So take a peek at this free list of interesting companies with strong recent earnings growth (and a low P/E). New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave 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":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"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":"4.29.3","shortVersion":"4.29.3","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/2491428511"}