Some Jin Medical International Ltd. (NASDAQ:ZJYL) Shareholders Look For Exit As Shares Take 33% Pounding

The Jin Medical International Ltd. (NASDAQ:ZJYL) share price has fared very poorly over the last month, falling by a substantial 33%. The recent drop completes a disastrous twelve months for shareholders, who are sitting on a 83% loss during that time. Even after such a large drop in price, Jin Medical International may still be sending very bearish signals at the moment with a price-to-earnings (or "P/E") ratio of 38x, since almost half of all companies in the United States have P/E ratios under 18x and even P/E's lower than 11x are not unusual. Although, it's not wise to just take the P/E at face value as there may be an explanation why it's so lofty. 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. For example, consider that Jin Medical International's financial performance has been poor lately as its earnings have been in decline. It might be that many expect the company to still outplay most other companies over the coming period, which has kept the P/E from collapsing. You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason. See our latest analysis for Jin Medical International NasdaqCM:ZJYL Price to Earnings Ratio vs Industry October 10th 2025 Although there are no analyst estimates available for Jin Medical International, take a look at this free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow. How Is Jin Medical International's Growth Trending? Jin Medical International's P/E ratio would be typical for a company that's expected to deliver very strong growth, and importantly, perform much better than the market. Retrospectively, the last year delivered a frustrating 39% decrease to the company's bottom line. The last three years don't look nice either as the company has shrunk EPS by 99% in aggregate. Accordingly, shareholders would have felt downbeat about the medium-term rates of earnings growth. Weighing that medium-term earnings trajectory against the broader market's one-year forecast for expansion of 15% shows it's an unpleasant look. With this information, we find it concerning that Jin Medical International is trading at a P/E higher than the market. Apparently many investors in the company are way more bullish than recent times would indicate and aren't willing to let go of their stock at any price. There's a very good chance existing shareholders are setting themselves up for future disappointment if the P/E falls to levels more in line with the recent negative growth rates. The Key Takeaway Jin Medical International's shares may have retreated, but its P/E is still flying high. We'd say the price-to-earnings ratio's power isn't primarily as a valuation instrument but rather to gauge current investor sentiment and future expectations. Our examination of Jin Medical International revealed its shrinking earnings over the medium-term aren't impacting its high P/E anywhere near as much as we would have predicted, given the market is set to grow. When we see earnings heading backwards and underperforming the market forecasts, we suspect the share price is at risk of declining, sending the high P/E lower. If recent medium-term earnings trends continue, it will place shareholders' investments at significant risk and potential investors in danger of paying an excessive premium. There are also other vital risk factors to consider and we've discovered 4 warning signs for Jin Medical International (1 doesn't sit too well with us!) that you should be aware of before investing here. Of course, you might find a fantastic investment by looking at a few good candidates. So take a peek at this free list of companies with a strong growth track record, trading on a low P/E.