• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Artra Group Corporation (TSE:6029) Held Back By Insufficient Growth Even After Shares Climb 41%

    Simply Wall St·12/22/2025 22:23:42
    Listen to the news

    Artra Group Corporation (TSE:6029) shares have had a really impressive month, gaining 41% after a shaky period beforehand. Looking back a bit further, it's encouraging to see the stock is up 60% in the last year.

    Even after such a large jump in price, Artra Group's price-to-earnings (or "P/E") ratio of 10.5x might still make it look like a buy right now compared to the market in Japan, where around half of the companies have P/E ratios above 15x and even P/E's above 22x are quite common. Although, it's not wise to just take the P/E at face value as there may be an explanation why it's limited.

    AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

    With earnings growth that's exceedingly strong of late, Artra Group has been doing very 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.

    See our latest analysis for Artra Group

    pe-multiple-vs-industry
    TSE:6029 Price to Earnings Ratio vs Industry December 22nd 2025
    Want the full picture on earnings, revenue and cash flow for the company? Then our free report on Artra Group will help you shine a light on its historical performance.

    How Is Artra Group's Growth Trending?

    The only time you'd be truly comfortable seeing a P/E as low as Artra Group's is when the company's growth is on track to lag the market.

    Retrospectively, the last year delivered an exceptional 270% gain to the company's bottom line. Still, EPS has barely risen at all from three years ago in total, which is not ideal. Accordingly, shareholders probably wouldn't have been overly satisfied with the unstable medium-term growth rates.

    Comparing that to the market, which is predicted to deliver 8.9% growth in the next 12 months, the company's momentum is weaker based on recent medium-term annualised earnings results.

    In light of this, it's understandable that Artra Group's P/E sits below the majority of other companies. It seems most investors are expecting to see the recent limited growth rates continue into the future and are only willing to pay a reduced amount for the stock.

    What We Can Learn From Artra Group's P/E?

    Despite Artra Group's shares building up a head of steam, its P/E still lags 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.

    As we suspected, our examination of Artra Group revealed its three-year earnings trends are contributing to its low P/E, given they look worse than current market expectations. At this stage investors feel the potential for an improvement in earnings isn't great enough to justify a higher P/E ratio. If recent medium-term earnings trends continue, it's hard to see the share price rising strongly in the near future under these circumstances.

    Plus, you should also learn about these 3 warning signs we've spotted with Artra Group (including 1 which shouldn't be ignored).

    Of course, you might find a fantastic investment by looking at a few good candidates. So take a peek at this free list of companies with a strong growth track record, trading on a low P/E.