Insufficient Growth At NHK Spring Co., Ltd. (TSE:5991) Hampers Share Price
NHK Spring Co., Ltd.’s (TSE:5991) price-to-earnings (or “P/E”) ratio of 9.6x might make it look like a buy right now compared to the market in Japan, where around half of the companies have P/E ratios above 15x and even P/E’s above 23x 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.
NHK Spring 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 any…
