The Price Is Right For Nippon Sanso Holdings Corporation (TSE:4091)
When close to half the companies in Japan have price-to-earnings ratios (or “P/E’s”) below 13x, you may consider Nippon Sanso Holdings Corporation (TSE:4091) as a stock to avoid entirely with its 24.7x 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 so lofty.
Nippon Sanso Holdings could be doing better as its earnings have been going backwards lately while most other companies have been seeing positive earnings growth. 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,…
