Further Upside For Nankai Chemical Company,Limited (TSE:4040) Shares Could Introduce Price Risks After 34% Bounce
Nankai Chemical Company,Limited (TSE:4040) shareholders have had their patience rewarded with a 34% share price jump in the last month. Not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 13% in the last twelve months.
Although its price has surged higher, Nankai Chemical CompanyLimited’s price-to-earnings (or “P/E”) ratio of 6.7x might still make it look like a buy right now compared to the market in Japan, where around half of the companies have P/E ratios above 14x and even P/E’s above 21x are quite common. However, the P/E might be low for a reason and it requires further investigation to determine if it’s justified.
