Yues International Holdings Group Limited (HKG:1529) shares have had a really impressive month, gaining 38% after a shaky period beforehand. Unfortunately, the gains of the last month did little to right the losses of the last year with the stock still down 23% over that time.
After such a large jump in price, given close to half the companies operating in Hong Kong's Logistics industry have price-to-sales ratios (or "P/S") below 0.3x, you may consider Yues International Holdings Group as a stock to potentially avoid with its 1.7x P/S ratio. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's as high as it is.
SEHK:1529 Price to Sales Ratio vs Industry June 13th 2024
What Does Yues International Holdings Group's P/S Mean For Shareholders?
For example, consider that Yues International Holdings Group's financial performance has been poor lately as its revenue has been in decline. One possibility is that the P/S is high because investors think the company will still do enough to outperform the broader industry in the near future. However, if this isn't the case, investors might get caught out paying too much for the stock.
We don't have analyst forecasts, but you can see how recent trends are setting up the company for the future by checking out our free report on Yues International Holdings Group's earnings, revenue and cash flow.
Is There Enough Revenue Growth Forecasted For Yues International Holdings Group?
Yues International Holdings Group's P/S ratio would be typical for a company that's expected to deliver solid growth, and importantly, perform better than the industry.
Retrospectively, the last year delivered a frustrating 25% decrease to the company's top line. As a result, revenue from three years ago have also fallen 28% overall. Therefore, it's fair to say the revenue growth recently has been undesirable for the company.
Weighing that medium-term revenue trajectory against the broader industry's one-year forecast for expansion of 14% shows it's an unpleasant look.
With this information, we find it concerning that Yues International Holdings Group is trading at a P/S higher than the industry. Apparently many investors in the company are way more bullish than recent times would indicate and aren't willing to let go of their stock at any price. There's a very good chance existing shareholders are setting themselves up for future disappointment if the P/S falls to levels more in line with the recent negative growth rates.
The Key Takeaway
Yues International Holdings Group shares have taken a big step in a northerly direction, but its P/S is elevated as a result. 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.
We've established that Yues International Holdings Group currently trades on a much higher than expected P/S since its recent revenues have been in decline over the medium-term. Right now we aren't comfortable with the high P/S as this revenue performance is highly unlikely to support such positive sentiment for long. Unless the recent medium-term conditions improve markedly, investors will have a hard time accepting the share price as fair value.
There are also other vital risk factors to consider and we've discovered 4 warning signs for Yues International Holdings Group (1 is potentially serious!) that you should be aware of before investing here.
If these risks are making you reconsider your opinion on Yues International Holdings Group, explore our interactive list of high quality stocks to get an idea of what else is out there.
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.
Yues International Holdings Group Limited (HKG:1529)股票在经历一个动荡时期后,上个月表现出色,上涨了38%。不幸的是,过去一年的亏损仍使得股票下跌了23%。
股价大涨后,有近一半的香港物流行业公司的市销率低于0.3倍,考虑到Yues International Holdings Group的1.7倍市销率,你可能会考虑避开该股票。但仅仅看市销率并不明智,因为市销率高可能有其原因。
1529股票的市销率与行业的比较(截至2024年6月13日)
1529股票的市销率对股东有何意义?
例如,考虑到Yues International Holdings Group近期的财务表现疲软,营业收入一直在下降,市销率高可能是因为投资者认为该公司将在不久的将来取得足够的业绩,超越整个行业。但如果不是这样,投资者可能会因为买入股票时花费过高而受损。
我们没有分析师预测,但你可以通过查看我们关于Yues International Holdings Group收益、营业收入和现金流的免费报告,了解最近趋势如何为公司的未来奠定基础。
Yues International Holdings Group有足够的营业收入增长预测吗?
Yues International Holdings Group的市销率对于预计能够提供稳健增长且重要的行业表现的公司来说是典型的。
去年的业绩大幅下降了25%,给公司的营业收入带来了沮丧的经验。因此,三年前的收入总体上下降了28%。因此,可以说最近的营收增长对于该公司来说是不可取的。基于这个信息,我们发现Yues International Holdings Group的市销率高于行业水平是令人担忧的。显然,许多公司的投资者比最近的情况更看好该公司,不愿意放弃他们手中的股票。如果市销率下降到与最近的负增长率相一致的水平,那么现有股东将很有可能引起将来的失望。
将中期营收轨迹与行业为期一年的14%扩张预测进行对比后发现,整体情况并不乐观。
Yues International Holdings Group股票已经迈出重大的飞跃,但其市销率因此升高。仅凭市销率来判断你是否应该卖出股票是不明智的,但可以作为公司未来前景的实用指南。
重要提示
我们发现,由于最近的营收长期下降,Yues International Holdings Group的市销率明显高于预期。目前,高市销率使我们不满意,因为这种营收表现高度不可能在中长期支持这样的积极情绪。除非最近的中期情况大幅改善,否则投资者将很难接受当前的股价是公允价值。
还有其他重要的风险因素需要考虑,我们发现Yues International Holdings Group有4个警告信号(其中一个是潜在严重的!)需要在投资这里之前注意。我们已经确定这个股票当前交易的市销率远高于预期,因为其近期收入在中期内一直在下降。目前我们对高市销率不满意,因为这种营业表现取得更高的市销率已经是十分不可持续的。除非最近的中期情况大幅改善,否则投资者将很难接受当前的股价是公允价值。