The Market Lifts Inta Bina Group Berhad (KLSE:INTA) Shares 29% But It Can Do More

Simply Wall St · 05/07 23:12

Inta Bina Group Berhad (KLSE:INTA) shareholders are no doubt pleased to see that the share price has bounced 29% in the last month, although it is still struggling to make up recently lost ground. Taking a wider view, although not as strong as the last month, the full year gain of 11% is also fairly reasonable.

Although its price has surged higher, given about half the companies in Malaysia have price-to-earnings ratios (or "P/E's") above 14x, you may still consider Inta Bina Group Berhad as an attractive investment with its 8.1x P/E ratio. However, the P/E might be low for a reason and it requires further investigation to determine if it's justified.

Our free stock report includes 3 warning signs investors should be aware of before investing in Inta Bina Group Berhad. Read for free now.

With earnings growth that's superior to most other companies of late, Inta Bina Group Berhad has been doing relatively well. It might be that many expect the strong earnings performance to degrade substantially, which has repressed the P/E. If you like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's out of favour.

View our latest analysis for Inta Bina Group Berhad

pe-multiple-vs-industry
KLSE:INTA Price to Earnings Ratio vs Industry May 7th 2025
If you'd like to see what analysts are forecasting going forward, you should check out our free report on Inta Bina Group Berhad.

How Is Inta Bina Group Berhad's Growth Trending?

Inta Bina Group Berhad's P/E ratio would be typical for a company that's only expected to deliver limited growth, and importantly, perform worse than the market.

Taking a look back first, we see that the company grew earnings per share by an impressive 43% last year. The strong recent performance means it was also able to grow EPS by 173% in total over the last three years. So we can start by confirming that the company has done a great job of growing earnings over that time.

Turning to the outlook, the next three years should generate growth of 18% per annum as estimated by the sole analyst watching the company. That's shaping up to be materially higher than the 10.0% per annum growth forecast for the broader market.

With this information, we find it odd that Inta Bina Group Berhad is trading at a P/E lower than the market. Apparently some shareholders are doubtful of the forecasts and have been accepting significantly lower selling prices.

The Final Word

Despite Inta Bina Group Berhad's shares building up a head of steam, its P/E still lags most other companies. It's argued the price-to-earnings ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator.

Our examination of Inta Bina Group Berhad's analyst forecasts revealed that its superior earnings outlook isn't contributing to its P/E anywhere near as much as we would have predicted. When we see a strong earnings outlook with faster-than-market growth, we assume potential risks are what might be placing significant pressure on the P/E ratio. It appears many are indeed anticipating earnings instability, because these conditions should normally provide a boost to the share price.

Before you settle on your opinion, we've discovered 3 warning signs for Inta Bina Group Berhad (1 is a bit concerning!) that you should be aware of.

If these risks are making you reconsider your opinion on Inta Bina Group Berhad, explore our interactive list of high quality stocks to get an idea of what else is out there.