No. of Recommendations: 4
I just added it to my watch list, however its unlikely I would be an investor at current levels.
The thesis would be that it will return to a higher trading multiple (its currently at 15x TTM EPS). Revenue & Earnings have been flat for a while and there is nothing obvious that would change that trend. Could they earn $8.00 a share in the next few years? sure. Could they get a 18x multiple on that? possibly.
This implies an upside of about 40% - 50% from current levels (trading at just under $100).
If you like the safety of the dividend, its probably a decent entry point; but I am not looking for any income from my investments just yet. Downside certainly looks limited from here, so maybe a safe place to hide... (if you so inclined).
Historical TTM PE Ratio
Year Q1 Q2 Q3 Q4
2025 25.63 18.04 19.16 15.39*
2024 74.22 57.52 54.10 42.65
2023 244.08 121.48 175.39 207.77
2022 32.84 33.55 35.14 36.08
2021 23.06 27.84 41.11 75.17
2020 21.42 25.20 19.86 18.04
tecmo
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