Kurita Water Industries Ltd.’s (TSE:6370) Price Is Out Of 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 Kurita Water Industries Ltd. (TSE:6370) as a stock to potentially avoid with its 16.6x P/E ratio. Although, it’s not wise to just take the P/E at face value as there may be an explanation why it’s as high as it is.
With earnings growth that’s superior to most other companies of late, Kurita Water Industries has been doing relatively well. It seems that many are expecting the strong earnings performance to persist, which has raised the P/E. If not, then existing shareholders might be a little nervous…
