Benign Growth For Bumi Armada Berhad (KLSE:ARMADA) Underpins Its Share Price
Bumi Armada Berhad’s (KLSE:ARMADA) price-to-earnings (or “P/E”) ratio of 5x might make it look like a strong buy right now compared to the market in Malaysia, where around half of the companies have P/E ratios above 15x and even P/E’s above 26x are quite common. However, the P/E might be quite low for a reason and it requires further investigation to determine if it’s justified.
Recent times have been advantageous for Bumi Armada Berhad as its earnings have been rising faster than most other companies. It might be that many expect the strong earnings performance to degrade substantially, which has repressed…
