Market Participants Recognise China Yuchai International Limited's (NYSE:CYD) Earnings

With a price-to-earnings (or "P/E") ratio of 21.5x China Yuchai International Limited (NYSE:CYD) may be sending bearish signals at the moment, given that almost half of all companies in the United States have P/E ratios under 19x and even P/E's lower than 11x are not unusual. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the elevated P/E. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. China Yuchai International certainly has been doing a good job lately as it's been growing earnings more than most other companies. The P/E is probably high because investors think this strong earnings performance will continue. You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason. View our latest analysis for China Yuchai International NYSE:CYD Price to Earnings Ratio vs Industry December 23rd 2025 Want the full picture on analyst estimates for the company? Then our free report on China Yuchai International will help you uncover what's on the horizon. Is There Enough Growth For China Yuchai International? There's an inherent assumption that a company should outperform the market for P/E ratios like China Yuchai International's to be considered reasonable. Retrospectively, the last year delivered an exceptional 40% gain to the company's bottom line. Pleasingly, EPS has also lifted 333% in aggregate from three years ago, thanks to the last 12 months of growth. Accordingly, shareholders would have probably welcomed those medium-term rates of earnings growth. Shifting to the future, estimates from the dual analysts covering the company suggest earnings should grow by 24% per annum over the next three years. Meanwhile, the rest of the market is forecast to only expand by 11% per year, which is noticeably less attractive. In light of this, it's understandable that China Yuchai International's P/E sits above the majority of other companies. Apparently shareholders aren't keen to offload something that is potentially eyeing a more prosperous future. The Bottom Line On China Yuchai International's P/E While the price-to-earnings ratio shouldn't be the defining factor in whether you buy a stock or not, it's quite a capable barometer of earnings expectations. As we suspected, our examination of China Yuchai International's analyst forecasts revealed that its superior earnings outlook is contributing to its high P/E. At this stage investors feel the potential for a deterioration in earnings isn't great enough to justify a lower P/E ratio. Unless these conditions change, they will continue to provide strong support to the share price. Having said that, be aware China Yuchai International is showing 1 warning sign in our investment analysis, you should know about. Of course, you might also be able to find a better stock than China Yuchai International. So you may wish to see this free collection of other companies that have reasonable P/E ratios and have grown earnings strongly. Mobile Infrastructure for Defense and DisasterThe next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.Get the investor briefing before the next round of contractsSponsored On Behalf of CiTech