What FLSmidth & Co. A/S’ (CPH:FLS) 31% Share Price Gain Is Not Telling You
Those holding FLSmidth & Co. A/S (CPH:FLS) shares would be relieved that the share price has rebounded 31% in the last thirty days, but it needs to keep going to repair the recent damage it has caused to investor portfolios. The bad news is that even after the stocks recovery in the last 30 days, shareholders are still underwater by about 5.5% over the last year.
Following the firm bounce in price, given around half the companies in Denmark have price-to-earnings ratios (or “P/E’s”) below 15x, you may consider FLSmidth as a stock to potentially avoid with its 20.8x P/E ratio. Although, it’s not wise to just take the P/E at face value as there may be an explanation why it’s as high as it is.
