Despite an already strong run, CA Cultural Technology Group Limited (HKG:1566) shares have been powering on, with a gain of 37% in the last thirty days. 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.
Even after such a large jump in price, when close to half the companies operating in Hong Kong's Hospitality industry have price-to-sales ratios (or "P/S") above 0.9x, you may still consider CA Cultural Technology Group as an enticing stock to check out with its 0.1x P/S ratio. However, the P/S might be low for a reason and it requires further investigation to determine if it's justified.
SEHK:1566 Price to Sales Ratio vs Industry June 5th 2024
What Does CA Cultural Technology Group's Recent Performance Look Like?
For example, consider that CA Cultural Technology Group's financial performance has been pretty ordinary lately as revenue growth is non-existent. One possibility is that the P/S is low because investors think this benign revenue growth rate will likely underperform the broader industry in the near future. Those who are bullish on CA Cultural Technology Group 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 CA Cultural Technology Group, 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 Revenue Growth Forecasted For CA Cultural Technology Group?
In order to justify its P/S ratio, CA Cultural Technology Group would need to produce sluggish growth that's trailing the industry.
Retrospectively, the last year delivered virtually the same number to the company's top line as the year before. Likewise, not much has changed from three years ago as revenue have been stuck during that whole time. So it seems apparent to us that the company has struggled to grow revenue meaningfully over that time.
Comparing the recent medium-term revenue trends against the industry's one-year growth forecast of 19% shows it's noticeably less attractive.
With this information, we can see why CA Cultural Technology Group is trading at a P/S lower than the industry. Apparently many shareholders weren't comfortable holding on to something they believe will continue to trail the wider industry.
What Does CA Cultural Technology Group's P/S Mean For Investors?
CA Cultural Technology Group's stock price has surged recently, but its but its P/S still remains modest. While the price-to-sales ratio shouldn't be the defining factor in whether you buy a stock or not, it's quite a capable barometer of revenue expectations.
Our examination of CA Cultural Technology Group confirms that the company's revenue trends over the past three-year years are a key factor in its low price-to-sales ratio, as we suspected, given they fall short of current industry expectations. At this stage investors feel the potential for an improvement in revenue isn't great enough to justify a higher P/S ratio. Unless the recent medium-term conditions improve, they will continue to form a barrier for the share price around these levels.
Plus, you should also learn about these 5 warning signs we've spotted with CA Cultural Technology Group.
If you're unsure about the strength of CA Cultural Technology Group's business, why not explore our interactive list of stocks with solid business fundamentals for some other companies you may have missed.
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.
尽管CA Cultural Technology Group Limited (HKG:1566)股票已经运行良好,但在过去30天中涨幅达37%。虽然最近的买家可能会感到高兴,但长期持有者可能不会感到高兴,因为最近的涨幅仅仅使股票回到了一年前的水平。
即使是在价格跃升如此之大的情况下,在香港酒店业有接近一半的公司市销率(或“P/S”)高于0.9x时,您仍然可以考虑CA Cultural Technology Group,因为它的市销率只有0.1x。然而,股票的市销率可能之所以低是有原因的,需要进一步调查以确定是否合理。
SEHK:1566市销率与行业板块比较2024年6月5日
CA Cultural Technology Group的近期表现如何?
例如,考虑到CA Cultural Technology Group的财务表现最近相当普通,因为营收增长不存在。一个可能性是,市销率低是因为投资者认为,这种良性的营收增长率在不久的将来可能会表现比整个行业更差。看好CA Cultural Technology Group的人希望这不是事实,这样他们就可以以更低的估值买入股票。
尽管没有CA Cultural Technology Group的分析师预期,但查看这个免费的数据丰富的可视化图表,可以让您了解公司在收入、营收和现金流方面的情况。
CA Cultural Technology Group有没有营收增长预测?
为了证明其市销率合理,CA Cultural Technology Group需要产生萎靡不振的增长,而这种增长要落后于整个行业。
回顾过去一年,公司的营业收入与前一年基本相同。同样,在三年前也没有太多变化,营业收入一直处于停滞状态。因此,我们认为公司在那段时间内难以实现营业收入的有意义增长。通过这些信息,我们可以看到为什么CA Cultural Technology Group的市销率低于行业水平。显然,许多股东不愿持有一些他们认为将继续落后于整个行业的股票。
与行业预计一年增长19%的一年生长预测相比,最近的中期营收趋势明显不太有吸引力。
有了这些信息,我们可以看到为什么CA Cultural Technology Group的市销率低于行业水平。显然,许多股东不愿持有一些他们认为将继续落后于整个行业的股票。
CA Cultural Technology Group的市销率对投资者意味着什么?
CA Cultural Technology Group的股票价格最近大涨,但其市销率仍然保持适度。市销率不应该是是否购买股票的决定性因素,但它是收入预期的相当可靠的晴雨表。
我们对CA Cultural Technology Group的研究证实了,在过去三年中,公司的营业收入趋势是其低市销率的关键因素。由于公司的营业收入低于当前行业预期,因此市场预期其有改善的潜力不足以证明其高市销率合理。除非最近的中期条件得到改善,否则它们将继续形成股价在这些水平左右的障碍。
此外,您还应该了解CA Cultural Technology Group的这5个警示信号。
如果您对CA Cultural Technology Group的业务不确定,为什么不浏览我们的交互式公司清单,其中包含一些其他公司您可能错过的具有良好业务基础的股票。