Subdued Growth No Barrier To Mainfreight Limited’s (NZSE:MFT) Price
When close to half the companies in New Zealand have price-to-earnings ratios (or “P/E’s”) below 18x, you may consider Mainfreight Limited (NZSE:MFT) as a stock to avoid entirely with its 30.4x 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.
With earnings that are retreating more than the market’s of late, Mainfreight has been very sluggish. It might be that many expect the dismal earnings performance to recover substantially, which has kept the P/E from collapsing. You’d really hope so, otherwise you’re paying a pretty hefty price for…
