Fujitec Co., Ltd.’s (TSE:6406) Price In Tune With Earnings
When close to half the companies in Japan have price-to-earnings ratios (or “P/E’s”) below 13x, you may consider Fujitec Co., Ltd. (TSE:6406) as a stock to avoid entirely with its 33.5x P/E ratio. However, the P/E might be quite high for a reason and it requires further investigation to determine if it’s justified.
Fujitec hasn’t been tracking well recently as its declining earnings compare poorly to other companies, which have seen some growth on average. It might be that many expect the dour earnings performance to recover substantially, which has kept the P/E from collapsing. You’d really hope so, otherwise…
