Tokyo Seimitsu Co., Ltd.’s (TSE:7729) 32% Share Price Surge Not Quite Adding Up
Tokyo Seimitsu Co., Ltd. (TSE:7729) shareholders would be excited to see that the share price has had a great month, posting a 32% gain and recovering from prior weakness. The last 30 days bring the annual gain to a very sharp 33%.
After such a large jump in price, given around half the companies in Japan have price-to-earnings ratios (or “P/E’s”) below 14x, you may consider Tokyo Seimitsu as a stock to potentially avoid with its 17.2x P/E ratio. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the elevated P/E.
