Citizen Watch Co., Ltd.’s (TSE:7762) Share Price Is Matching Sentiment Around Its Earnings
With a price-to-earnings (or “P/E”) ratio of 10.5x Citizen Watch Co., Ltd. (TSE:7762) may be sending bullish signals at the moment, given that almost half of all companies in Japan have P/E ratios greater than 15x and even P/E’s higher than 23x are not unusual. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the reduced P/E.
Citizen Watch hasn’t been tracking well recently as its declining earnings compare poorly to other companies, which have seen some growth on average. The P/E is probably low because investors think this poor earnings performance isn’t going to get…
