TSE:6361Machinery
Ebara (TSE:6361) Stock Premium Looks Exposed As Margins Tighten
Ebara stock went into this earnings report priced for perfection, trading at a P/E of 33.7x against a Japan machinery peer average of 13.4x. That kind of premium only holds if the profit story keeps justifying it. The headline this quarter is a squeeze on profitability. Net profit margin on a trailing basis sits at 8% compared with 8.2% a year earlier, while quarterly basic earnings per share in Q2 slipped to ¥33.41 from ¥40.13 in Q1. The question now is how long investors will keep paying up...