Green Chemical Co., Ltd.’s (KRX:083420) 25% Share Price Surge Not Quite Adding Up
Green Chemical Co., Ltd. (KRX:083420) shareholders would be excited to see that the share price has had a great month, posting a 25% gain and recovering from prior weakness. Unfortunately, despite the strong performance over the last month, the full year gain of 7.9% isn’t as attractive.
After such a large jump in price, Green Chemical may be sending very bearish signals at the moment with a price-to-earnings (or “P/E”) ratio of 21.7x, since almost half of all companies in Korea have P/E ratios under 11x and even P/E’s lower than 6x are not unusual. However, the P/E might be quite high for a reason and it requires further investigation to determine if it’s justified.
We’ve discovered 2 warning signs about Green Chemical. View…
