Enviro Energy International Holdings Limited (HKG:1102) shares have continued their recent momentum with a 111% gain in the last month alone. While recent buyers may be laughing, long-term holders might not be as pleased since the recent gain only brings the stock back to where it started a year ago.
Although its price has surged higher, it's still not a stretch to say that Enviro Energy International Holdings' price-to-sales (or "P/S") ratio of 0.1x right now seems quite "middle-of-the-road" compared to the Trade Distributors industry in Hong Kong, where the median P/S ratio is around 0.6x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.
How Has Enviro Energy International Holdings Performed Recently?
Enviro Energy International Holdings certainly has been doing a great job lately as it's been growing its revenue at a really rapid pace. It might be that many expect the strong revenue performance to wane, which has kept the share price, and thus the P/S ratio, from rising. Those who are bullish on Enviro Energy International Holdings will be hoping that this isn't the case, so that they can pick up the stock at a lower valuation.
Although there are no analyst estimates available for Enviro Energy International Holdings, take a look at this free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.
How Is Enviro Energy International Holdings' Revenue Growth Trending?
Enviro Energy International Holdings' P/S ratio would be typical for a company that's only expected to deliver moderate growth, and importantly, perform in line with the industry.
Taking a look back first, we see that the company's revenues underwent some rampant growth over the last 12 months. Spectacularly, three year revenue growth has also set the world alight, thanks to the last 12 months of incredible growth. Accordingly, shareholders would have been over the moon with those medium-term rates of revenue growth.
This is in contrast to the rest of the industry, which is expected to grow by 27% over the next year, materially lower than the company's recent medium-term annualised growth rates.
In light of this, it's curious that Enviro Energy International Holdings' P/S sits in line with the majority of other companies. It may be that most investors are not convinced the company can maintain its recent growth rates.
The Bottom Line On Enviro Energy International Holdings' P/S
Enviro Energy International Holdings appears to be back in favour with a solid price jump bringing its P/S back in line with other companies in the industry Using the price-to-sales 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.
To our surprise, Enviro Energy International Holdings revealed its three-year revenue trends aren't contributing to its P/S as much as we would have predicted, given they look better than current industry expectations. It'd be fair to assume that potential risks the company faces could be the contributing factor to the lower than expected P/S. While recent revenue trends over the past medium-term suggest that the risk of a price decline is low, investors appear to see the likelihood of revenue fluctuations in the future.
You always need to take note of risks, for example - Enviro Energy International Holdings has 4 warning signs we think you should be aware of.
It's important to make sure you look for a great company, not just the first idea you come across. So if growing profitability aligns with your idea of a great company, take a peek at this free list of interesting companies with strong recent earnings growth (and a low P/E).
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尽管其价格已经飙升,但可以毫不夸张地说,与香港的贸易分销商行业相比,目前Enviro Energy International Holdings的0.1倍市销率(或 “市盈率”)似乎相当 “处于中间位置”,香港的市销率中位数约为0.6倍。但是,如果市销率没有合理的基础,投资者可能会忽略明显的机会或潜在的挫折。
Enviro Energy 国际控股公司最近的表现如何?
Enviro Energy International Holdings最近确实做得很好,因为其收入增长非常快。许多人可能预计,强劲的收入表现将减弱,这阻碍了股价乃至市销售率的上升。那些看好Enviro Energy International Holdings的人希望情况并非如此,这样他们就可以以较低的估值买入该股。
尽管没有分析师对Enviro Energy International Holdings的估计,但看看这个免费的数据丰富的可视化图表,看看该公司如何积累收益、收入和现金流。
Enviro Energy International Holdings的收入增长趋势如何?
Enviro Energy International Holdings的市销率对于一家预计只会实现适度增长且重要的是表现与行业持平的公司来说是典型的。
有鉴于此,奇怪的是,Enviro Energy International Holdings的市销率与其他多数公司持平。可能是大多数投资者不相信该公司能够维持其最近的增长率。
Enviro Energy International Holdings市销率的底线
Enviro Energy International Holdings似乎再次受到青睐,股价稳步上涨,使其市销率与业内其他公司保持一致。仅凭市销比来确定是否应该出售股票是不明智的,但它可以作为公司未来前景的实用指南。
令我们惊讶的是,Enviro Energy International Holdings透露,其三年收入趋势对市销率的贡献没有我们预期的那么大,因为这些趋势看起来好于当前的行业预期。可以公平地假设,公司面临的潜在风险可能是市销率低于预期的促成因素。尽管最近中期的收入趋势表明价格下跌的风险很低,但投资者似乎看到了未来收入波动的可能性。
例如,您始终需要注意风险——Enviro Energy International Holdings有4个我们认为您应该注意的警告信号。