Undervalued based on P/E, page-8

  1. 4,941 Posts.
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    Earnings per share at H16 were (272.6) cents. That's a very big negative number. Even with the impairment (which is still a very real number, and not just simply an ignorable non-cash item), it was still $(93)M.

    That's still a $(93,000,000) loss ignoring the impairments, etc. Mind you, once adjusted for FX translation, the underlying loss was even higher.

    beyond this, the Company has withdrawn all guidance having done so back in December. Back then, Grech even cats doubt on the ability to generate a full year profit (ex-impairment, etc) meaning that there was (at the time, and still is) doubt about SGH's ability to even make a 2nd half profit.

    But way before then, SGH has much more significant hurdles to scale meaning that they need to sort things out first with the banking syndicate. If they do, then they might have a chance of surviving, but if not, their position is far more likely, terminal.

    So, SGH does not have an ongoing P/E of 0.86 or anything of the sort. Indeed, with having to submit weekly cashflow operating reports, etc, all that they have, at this immediate time, is a week to week, very short term, time horizon. It doesn't get any starker than that.

    As for P/E ratios, they generally represent traps to the unwary, being based as they are on historical results, and sometime forward given estimates, based then on a whole range of assumptions, not necessarily made by the Company, but rather by analysts seeking both to extrapolate and differentiate themselves from others in their field.

    Sometimes, P/E ratios can be useful, but never in isolation, never as a primary forecasting tool, and never without one first doing their own research.
 
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(20min delay)
Last
$51.90
Change
0.500(0.97%)
Mkt cap ! $21.12B
Open High Low Value Volume
$51.56 $52.61 $51.23 $20.56M 395.5K

Buyers (Bids)

No. Vol. Price($)
1 901 $51.90
 

Sellers (Offers)

Price($) Vol. No.
$52.16 1645 1
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Last trade - 16.13pm 07/07/2025 (20 minute delay) ?
SGH (ASX) Chart
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