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Question about company analisys--need expert helpQuestion about company analisys--need expert help
james21th said: "Dear all,
I found a company with very good figure below:
company name: Universal Insurance Holdings Inc
P/E: 2.65
Dividend yield: 11.43
EPS 5 year growth rate: 211.53
Capital spending 5 year growth rate: 38.99
ROE: 93.59
ROE 5 year avg: 100.31
Isn't it a very good company with high growth speed? The question is how come the P/E can remain such a low level as 2.65? nobody want to buy this company share? what is the reason behind?
Thank you very much if someone can answer this question.
Regards
James"
ratAphooey said: "It could be as simple as perception. If people dont perceive the value in the company the P/E will stay low."
james21th said: "But P/E 2.65 means almost two year and a half later you can get the whole investment amount back, plus 100% ROE , such a high speed growth rate, unless people don't want to own money, what fear people have to buy this stock?"