The Shanghai Menon Animal Nutrition Technology Co., Ltd. (SZSE:301156) share price has softened a substantial 37% over the previous 30 days, handing back much of the gains the stock has made lately. Longer-term shareholders will rue the drop in the share price, since it’s now virtually flat for the year after a promising few quarters.
Even after such a large drop in price, there still wouldn’t be many who think Shanghai Menon Animal Nutrition Technology’s price-to-earnings (or “P/E”) ratio of 29.3x is worth a mention when the median P/E in China is similar at about 29x. Although, it’s not wise to simply ignore the P/E without explanation as investors may be disregarding a distinct opportunity or a costly mistake.
The earnings growth achieved at Shanghai Menon Animal Nutrition Technology over the last year would be more than acceptable for most companies. One possibility is that the P/E is moderate because investors…
