The Price Is Right For Mitsui Fudosan Co., Ltd. (TSE:8801)
When close to half the companies in Japan have price-to-earnings ratios (or “P/E’s”) below 12x, you may consider Mitsui Fudosan Co., Ltd. (TSE:8801) as a stock to avoid entirely with its 19.5x P/E ratio. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly elevated P/E.
We’ve discovered 3 warning signs about Mitsui Fudosan. View them for free.
While the market has experienced earnings growth lately, Mitsui Fudosan’s earnings have gone into reverse gear, which is not great. One possibility is that the P/E is high because investors think this poor earnings performance will turn the corner. You’d really hope so, otherwise you’re paying a pretty hefty price for no particular reason….
