There Is A Reason MCJ Co., Ltd.’s (TSE:6670) Price Is Undemanding
When close to half the companies in Japan have price-to-earnings ratios (or “P/E’s”) above 14x, you may consider MCJ Co., Ltd. (TSE:6670) as an attractive investment with its 10.4x P/E ratio. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the reduced P/E.
There hasn’t been much to differentiate MCJ’s and the market’s earnings growth lately. One possibility is that the P/E is low because investors think this modest earnings performance may begin to slide. If you like the company, you’d be hoping this isn’t the case so that you could pick up some stock while it’s out of…
