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There's No Escaping S.C. De Reparat Material Rulant Reva S.A.'s (BVB:REVA) Muted Earnings Despite A 27% Share Price Rise

Simply Wall St · 2d ago

S.C. De Reparat Material Rulant Reva S.A. (BVB:REVA) shares have had a really impressive month, gaining 27% after a shaky period beforehand. Looking further back, the 17% rise over the last twelve months isn't too bad notwithstanding the strength over the last 30 days.

Even after such a large jump in price, S.C. De Reparat Material Rulant Reva's price-to-earnings (or "P/E") ratio of 4.8x might still make it look like a strong buy right now compared to the market in Romania, where around half of the companies have P/E ratios above 16x and even P/E's above 40x are quite common. However, the P/E might be quite low for a reason and it requires further investigation to determine if it's justified.

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As an illustration, earnings have deteriorated at S.C. De Reparat Material Rulant Reva over the last year, which is not ideal at all. It might be that many expect the disappointing earnings performance to continue or accelerate, which has repressed the P/E. However, if this doesn't eventuate then existing shareholders may be feeling optimistic about the future direction of the share price.

Check out our latest analysis for S.C. De Reparat Material Rulant Reva

pe-multiple-vs-industry
BVB:REVA Price to Earnings Ratio vs Industry December 18th 2025
We don't have analyst forecasts, but you can see how recent trends are setting up the company for the future by checking out our free report on S.C. De Reparat Material Rulant Reva's earnings, revenue and cash flow.

Does Growth Match The Low P/E?

In order to justify its P/E ratio, S.C. De Reparat Material Rulant Reva would need to produce anemic growth that's substantially trailing the market.

If we review the last year of earnings, dishearteningly the company's profits fell to the tune of 34%. This has erased any of its gains during the last three years, with practically no change in EPS being achieved in total. Accordingly, shareholders probably wouldn't have been overly satisfied with the unstable medium-term growth rates.

Weighing that recent medium-term earnings trajectory against the broader market's one-year forecast for expansion of 10% shows it's noticeably less attractive on an annualised basis.

In light of this, it's understandable that S.C. De Reparat Material Rulant Reva's P/E sits below the majority of other companies. Apparently many shareholders weren't comfortable holding on to something they believe will continue to trail the bourse.

What We Can Learn From S.C. De Reparat Material Rulant Reva's P/E?

S.C. De Reparat Material Rulant Reva's recent share price jump still sees its P/E sitting firmly flat on the ground. 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.

As we suspected, our examination of S.C. De Reparat Material Rulant Reva revealed its three-year earnings trends are contributing to its low P/E, given they look worse than current market expectations. Right now shareholders are accepting the low P/E as they concede future earnings probably won't provide any pleasant surprises. Unless the recent medium-term conditions improve, they will continue to form a barrier for the share price around these levels.

There are also other vital risk factors to consider and we've discovered 3 warning signs for S.C. De Reparat Material Rulant Reva (2 are concerning!) that you should be aware of before investing here.

If P/E ratios interest you, you may wish to see this free collection of other companies with strong earnings growth and low P/E ratios.