Hafary Holdings Limited (SGX:5VS) Doing What It Can To Lift Shares

Hafary Holdings Limited's (SGX:5VS) price-to-earnings (or "P/E") ratio of 6.8x might make it look like a buy right now compared to the market in Singapore, where around half of the companies have P/E ratios above 13x and even P/E's above 24x are quite common. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the reduced P/E. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. As an illustration, earnings have deteriorated at Hafary Holdings over the last year, which is not ideal at all. It might be that many expect the disappointing earnings performance to continue or accelerate, which has repressed the P/E. If you like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's out of favour. See our latest analysis for Hafary Holdings SGX:5VS Price to Earnings Ratio vs Industry July 14th 2025 Want the full picture on earnings, revenue and cash flow for the company? Then our free report on Hafary Holdings will help you shine a light on its historical performance. What Are Growth Metrics Telling Us About The Low P/E? Hafary Holdings' P/E ratio would be typical for a company that's only expected to deliver limited growth, and importantly, perform worse than the market. Taking a look back first, the company's earnings per share growth last year wasn't something to get excited about as it posted a disappointing decline of 29%. Even so, admirably EPS has lifted 138% in aggregate from three years ago, notwithstanding the last 12 months. Although it's been a bumpy ride, it's still fair to say the earnings growth recently has been more than adequate for the company. Comparing that to the market, which is only predicted to deliver 13% growth in the next 12 months, the company's momentum is stronger based on recent medium-term annualised earnings results. In light of this, it's peculiar that Hafary Holdings' P/E sits below the majority of other companies. Apparently some shareholders believe the recent performance has exceeded its limits and have been accepting significantly lower selling prices. The Key Takeaway It's argued the price-to-earnings ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator. Our examination of Hafary Holdings revealed its three-year earnings trends aren't contributing to its P/E anywhere near as much as we would have predicted, given they look better than current market expectations. There could be some major unobserved threats to earnings preventing the P/E ratio from matching this positive performance. It appears many are indeed anticipating earnings instability, because the persistence of these recent medium-term conditions would normally provide a boost to the share price. Before you take the next step, you should know about the 3 warning signs for Hafary Holdings (1 is a bit concerning!) that we have uncovered. If these risks are making you reconsider your opinion on Hafary Holdings, explore our interactive list of high quality stocks to get an idea of what else is out there.