Those holding Whole Shine Medical Technology Co., Ltd. (SZSE:002622) shares would be relieved that the share price has rebounded 31% in the last thirty days, but it needs to keep going to repair the recent damage it has caused to investor portfolios. Unfortunately, the gains of the last month did little to right the losses of the last year with the stock still down 31% over that time.
Following the firm bounce in price, you could be forgiven for thinking Whole Shine Medical Technology is a stock not worth researching with a price-to-sales ratios (or "P/S") of 3.2x, considering almost half the companies in China's Healthcare industry have P/S ratios below 1.9x. However, the P/S might be high for a reason and it requires further investigation to determine if it's justified.
SZSE:002622 Price to Sales Ratio vs Industry March 18th 2024
What Does Whole Shine Medical Technology's Recent Performance Look Like?
Whole Shine Medical Technology has been doing a good job lately as it's been growing revenue at a solid pace. It might be that many expect the respectable revenue performance to beat most other companies over the coming period, which has increased investors' willingness to pay up for the stock. You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason.
Want the full picture on earnings, revenue and cash flow for the company? Then our free report on Whole Shine Medical Technology will help you shine a light on its historical performance.
Do Revenue Forecasts Match The High P/S Ratio?
There's an inherent assumption that a company should outperform the industry for P/S ratios like Whole Shine Medical Technology's to be considered reasonable.
If we review the last year of revenue growth, the company posted a terrific increase of 22%. This great performance means it was also able to deliver immense revenue growth over the last three years. So we can start by confirming that the company has done a tremendous job of growing revenue over that time.
Comparing that to the industry, which is only predicted to deliver 18% growth in the next 12 months, the company's momentum is stronger based on recent medium-term annualised revenue results.
With this information, we can see why Whole Shine Medical Technology is trading at such a high P/S compared to the industry. It seems most investors are expecting this strong growth to continue and are willing to pay more for the stock.
The Bottom Line On Whole Shine Medical Technology's P/S
The large bounce in Whole Shine Medical Technology's shares has lifted the company's P/S handsomely. We'd say the price-to-sales ratio's power isn't primarily as a valuation instrument but rather to gauge current investor sentiment and future expectations.
It's no surprise that Whole Shine Medical Technology can support its high P/S given the strong revenue growth its experienced over the last three-year is superior to the current industry outlook. In the eyes of shareholders, the probability of a continued growth trajectory is great enough to prevent the P/S from pulling back. Barring any significant changes to the company's ability to make money, the share price should continue to be propped up.
Before you take the next step, you should know about the 1 warning sign for Whole Shine Medical Technology that we have uncovered.
If companies with solid past earnings growth is up your alley, you may wish to see this free collection of other companies with strong earnings growth and low P/E ratios.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
那些持有Whole Shine Medical Technology Co., Ltd.(深圳证券交易所:002622)股票的人会松一口气,因为股价在过去三十天中反弹了31%,但它需要继续修复最近对投资者投资组合造成的损失。不幸的是,上个月的涨幅几乎没有弥补去年的亏损,在此期间,该股仍下跌了31%。
在公司股价反弹之后,你认为Whole Shine Medical Technology是一只不值得研究的股票,其市销率(或 “市销率”)为3.2倍,这是可以原谅的,因为中国医疗行业中将近一半的公司的市销率低于1.9倍。但是,市销率之高可能是有原因的,需要进一步调查以确定其是否合理。
2024 年 3 月 18 日,SZSE:002622 与行业的股价销售比率
Whole Shine Medical Technology最近的表现如何?
Whole Shine Medical Technology最近表现不错,收入一直在稳步增长。许多人可能预计,在未来一段时间内,可观的收入表现将超过大多数其他公司,这增加了投资者购买股票的意愿。你真的希望如此,否则你会无缘无故地付出相当大的代价。
想全面了解公司的收益、收入和现金流吗?那么我们关于Whole Shine Medical Technology的免费报告将帮助您了解其历史表现。
收入预测与高市销率相匹配吗?
人们固有的假设是,如果像Whole Shine Medical Technology这样的市销率被认为是合理的,公司的表现应该优于该行业。
有了这些信息,我们可以明白为何Whole Shine Medical Technology的市销率与行业相比如此之高。看来大多数投资者都预计这种强劲的增长将继续下去,并愿意为该股支付更多费用。
总体而言,Shine Medical Technology的市销率是最重要的
Whole Shine Medical Technology股价的大幅反弹极大地提高了该公司的市销率。我们可以说,市销比率的力量主要不是作为一种估值工具,而是用来衡量当前的投资者情绪和未来预期。
鉴于Whole Shine Medical Technology在过去三年的强劲收入增长优于当前的行业前景,Whole Shine Medical Technology能够支持其高市销率也就不足为奇了。在股东眼中,持续增长轨迹的可能性很大,足以防止市销率回落。除非公司的盈利能力发生任何重大变化,否则应继续支撑股价。
在你采取下一步行动之前,你应该了解我们发现的Whole Shine Medical Technology的1个警告信号。