NPC Incorporated’s (TSE:6255) Share Price Not Quite Adding Up
With a price-to-earnings (or “P/E”) ratio of 17x NPC Incorporated (TSE:6255) may be sending bearish signals at the moment, given that almost half of all companies in Japan have P/E ratios under 14x and even P/E’s lower than 10x are not unusual. However, the P/E might be high for a reason and it requires further investigation to determine if it’s justified.
NPC hasn’t been tracking well recently as its declining earnings compare poorly to other companies, which have seen some growth on average. One possibility is that the P/E is high because investors think this poor earnings performance will turn the corner. If not,…
