Buzzi S.p.A.’s (BIT:BZU) Price Is Right But Growth Is Lacking
Buzzi S.p.A.’s (BIT:BZU) price-to-earnings (or “P/E”) ratio of 9.9x might make it look like a buy right now compared to the market in Italy, where around half of the companies have P/E ratios above 17x and even P/E’s above 29x are quite common. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the reduced P/E.
While the market has experienced earnings growth lately, Buzzi’s 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…
