WEBULL

Qatar Gas Transport Company Limited (Nakilat) (QPSC)'s (DSM:QGTS) Earnings Haven't Escaped The Attention Of Investors

Simply Wall St · 05/01/2025 03:04

Qatar Gas Transport Company Limited (Nakilat) (QPSC)'s (DSM:QGTS) price-to-earnings (or "P/E") ratio of 15.5x might make it look like a sell right now compared to the market in Qatar, where around half of the companies have P/E ratios below 12x and even P/E's below 10x are quite common. However, the P/E might be high for a reason and it requires further investigation to determine if it's justified.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Recent earnings growth for Qatar Gas Transport Company Limited (Nakilat) (QPSC) has been in line with the market. It might be that many expect the mediocre earnings performance to strengthen positively, which has kept the P/E from falling. You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason.

Check out our latest analysis for Qatar Gas Transport Company Limited (Nakilat) (QPSC)

pe-multiple-vs-industry
DSM:QGTS Price to Earnings Ratio vs Industry May 1st 2025
Want the full picture on analyst estimates for the company? Then our free report on Qatar Gas Transport Company Limited (Nakilat) (QPSC) will help you uncover what's on the horizon.

How Is Qatar Gas Transport Company Limited (Nakilat) (QPSC)'s Growth Trending?

In order to justify its P/E ratio, Qatar Gas Transport Company Limited (Nakilat) (QPSC) would need to produce impressive growth in excess of the market.

Taking a look back first, we see that the company managed to grow earnings per share by a handy 5.1% last year. The latest three year period has also seen a 21% overall rise in EPS, aided somewhat by its short-term performance. Therefore, it's fair to say the earnings growth recently has been respectable for the company.

Looking ahead now, EPS is anticipated to climb by 11% per year during the coming three years according to the four analysts following the company. Meanwhile, the rest of the market is forecast to only expand by 5.9% each year, which is noticeably less attractive.

With this information, we can see why Qatar Gas Transport Company Limited (Nakilat) (QPSC) is trading at such a high P/E compared to the market. Apparently shareholders aren't keen to offload something that is potentially eyeing a more prosperous future.

The Bottom Line On Qatar Gas Transport Company Limited (Nakilat) (QPSC)'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 Qatar Gas Transport Company Limited (Nakilat) (QPSC) maintains its high P/E on the strength of its forecast growth being higher than the wider market, as expected. Right now shareholders are comfortable with the P/E as they are quite confident future earnings aren't under threat. Unless these conditions change, they will continue to provide strong support to the share price.

It's always necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Qatar Gas Transport Company Limited (Nakilat) (QPSC), and understanding should be part of your investment process.

Of course, you might also be able to find a better stock than Qatar Gas Transport Company Limited (Nakilat) (QPSC). So you may wish to see this free collection of other companies that have reasonable P/E ratios and have grown earnings strongly.