Bechtle AG's (ETR:BC8) Shares May Have Run Too Fast Too Soon

When close to half the companies in Germany have price-to-earnings ratios (or "P/E's") below 17x, you may consider Bechtle AG (ETR:BC8) as a stock to potentially avoid with its 25.3x P/E ratio. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the elevated P/E. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Bechtle could be doing better as its earnings have been going backwards lately while most other companies have been seeing positive earnings growth. One possibility is that the P/E is high because investors think this poor earnings performance will turn the corner. If not, then existing shareholders may be extremely nervous about the viability of the share price. See our latest analysis for Bechtle XTRA:BC8 Price to Earnings Ratio vs Industry December 2nd 2025 Keen to find out how analysts think Bechtle's future stacks up against the industry? In that case, our free report is a great place to start. How Is Bechtle's Growth Trending? The only time you'd be truly comfortable seeing a P/E as high as Bechtle's is when the company's growth is on track to outshine 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 14%. The last three years don't look nice either as the company has shrunk EPS by 13% in aggregate. So unfortunately, we have to acknowledge that the company has not done a great job of growing earnings over that time. Looking ahead now, EPS is anticipated to climb by 14% per year during the coming three years according to the eleven analysts following the company. That's shaping up to be materially lower than the 17% per year growth forecast for the broader market. In light of this, it's alarming that Bechtle's P/E sits above the majority of other companies. Apparently many investors in the company are way more bullish than analysts indicate and aren't willing to let go of their stock at any price. Only the boldest would assume these prices are sustainable as this level of earnings growth is likely to weigh heavily on the share price eventually. The Bottom Line On Bechtle's P/E Using the price-to-earnings ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects. We've established that Bechtle currently trades on a much higher than expected P/E since its forecast growth is lower than the wider market. Right now we are increasingly uncomfortable with the high P/E as the predicted future earnings aren't likely to support such positive sentiment for long. This places shareholders' investments at significant risk and potential investors in danger of paying an excessive premium. The company's balance sheet is another key area for risk analysis. Our free balance sheet analysis for Bechtle with six simple checks will allow you to discover any risks that could be an issue. You might be able to find a better investment than Bechtle. If you want a selection of possible candidates, check out this free list of interesting companies that trade on a low P/E (but have proven they can grow earnings).