WEBULL

Investors Don't See Light At End Of Bulmetal JSC's (BUL:BMTL) Tunnel And Push Stock Down 48%

Simply Wall St · 6d ago

Bulmetal JSC (BUL:BMTL) shareholders that were waiting for something to happen have been dealt a blow with a 48% share price drop in the last month. The recent drop completes a disastrous twelve months for shareholders, who are sitting on a 52% loss during that time.

In spite of the heavy fall in price, given about half the companies in Bulgaria have price-to-earnings ratios (or "P/E's") above 26x, you may still consider Bulmetal JSC as an attractive investment with its 18x P/E ratio. However, the P/E might be low for a reason and it requires further investigation to determine if it's justified.

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For instance, Bulmetal JSC's receding earnings in recent times would have to be some food for thought. 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.

View our latest analysis for Bulmetal JSC

pe-multiple-vs-industry
BUL:BMTL Price to Earnings Ratio vs Industry January 7th 2026
Although there are no analyst estimates available for Bulmetal JSC, take a look at this free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.

Is There Any Growth For Bulmetal JSC?

In order to justify its P/E ratio, Bulmetal JSC would need to produce sluggish growth that's trailing the market.

Retrospectively, the last year delivered a frustrating 19% decrease to the company's bottom line. The last three years don't look nice either as the company has shrunk EPS by 63% in aggregate. Accordingly, shareholders would have felt downbeat about the medium-term rates of earnings growth.

Comparing that to the market, which is predicted to deliver 21% growth in the next 12 months, the company's downward momentum based on recent medium-term earnings results is a sobering picture.

With this information, we are not surprised that Bulmetal JSC is trading at a P/E lower than the market. Nonetheless, there's no guarantee the P/E has reached a floor yet with earnings going in reverse. There's potential for the P/E to fall to even lower levels if the company doesn't improve its profitability.

The Final Word

Bulmetal JSC's recently weak share price has pulled its P/E below most other companies. 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 Bulmetal JSC maintains its low P/E on the weakness of its sliding earnings over the medium-term, as expected. At this stage investors feel the potential for an improvement in earnings isn't great enough to justify a higher P/E ratio. Unless the recent medium-term conditions improve, they will continue to form a barrier for the share price around these levels.

And what about other risks? Every company has them, and we've spotted 5 warning signs for Bulmetal JSC (of which 1 can't be ignored!) you should know about.

If you're unsure about the strength of Bulmetal JSC's business, why not explore our interactive list of stocks with solid business fundamentals for some other companies you may have missed.