Industria de Diseño Textil, S.A.’s (BME:ITX) Share Price Could Signal Some Risk
When close to half the companies in Spain have price-to-earnings ratios (or “P/E’s”) below 18x, you may consider Industria de Diseño Textil, S.A. (BME:ITX) as a stock to potentially avoid with its 24.9x P/E ratio. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the elevated P/E.
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With earnings growth that’s inferior to most other companies of late, Industria de Diseño Textil has been relatively sluggish. It might be that many expect the uninspiring earnings performance to recover significantly, which has kept the P/E from collapsing. You’d really hope so, otherwise you’re paying a pretty hefty…
