The EPS Creative Health Technology Group Limited (HKG:3860) share price has fared very poorly over the last month, falling by a substantial 28%. The drop over the last 30 days has capped off a tough year for shareholders, with the share price down 29% in that time.
Even after such a large drop in price, it's still not a stretch to say that EPS Creative Health Technology Group's price-to-sales (or "P/S") ratio of 0.7x right now seems quite "middle-of-the-road" compared to the Luxury industry in Hong Kong, seeing as it matches the P/S ratio of the wider industry. Although, it's not wise to simply ignore the P/S without explanation as investors may be disregarding a distinct opportunity or a costly mistake.
SEHK:3860 Price to Sales Ratio vs Industry June 16th 2024
How Has EPS Creative Health Technology Group Performed Recently?
Revenue has risen at a steady rate over the last year for EPS Creative Health Technology Group, which is generally not a bad outcome. Perhaps the expectation moving forward is that the revenue growth will track in line with the wider industry for the near term, which has kept the P/S subdued. If not, then at least existing shareholders probably aren't too pessimistic about the future direction of the share price.
Although there are no analyst estimates available for EPS Creative Health 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 Some Revenue Growth Forecasted For EPS Creative Health Technology Group?
The only time you'd be comfortable seeing a P/S like EPS Creative Health Technology Group's is when the company's growth is tracking the industry closely.
Taking a look back first, we see that the company managed to grow revenues by a handy 3.7% last year. The solid recent performance means it was also able to grow revenue by 25% in total over the last three years. Accordingly, shareholders would have probably been satisfied with the medium-term rates of revenue growth.
This is in contrast to the rest of the industry, which is expected to grow by 13% over the next year, materially higher than the company's recent medium-term annualised growth rates.
With this in mind, we find it intriguing that EPS Creative Health Technology Group's P/S is comparable to that of its industry peers. Apparently many investors in the company are less bearish than recent times would indicate and aren't willing to let go of their stock right now. Maintaining these prices will be difficult to achieve as a continuation of recent revenue trends is likely to weigh down the shares eventually.
The Bottom Line On EPS Creative Health Technology Group's P/S
With its share price dropping off a cliff, the P/S for EPS Creative Health Technology Group looks to be in line with the rest of the Luxury industry. It's argued the price-to-sales ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator.
Our examination of EPS Creative Health Technology Group revealed its poor three-year revenue trends aren't resulting in a lower P/S as per our expectations, given they look worse than current industry outlook. When we see weak revenue with slower than industry growth, we suspect the share price is at risk of declining, bringing the P/S back in line with expectations. If recent medium-term revenue trends continue, the probability of a share price decline will become quite substantial, placing shareholders at risk.
And what about other risks? Every company has them, and we've spotted 3 warning signs for EPS Creative Health Technology Group (of which 1 shouldn't be ignored!) you should know about.
If these risks are making you reconsider your opinion on EPS Creative Health Technology 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
近一个月来,EPS Creative Health Technology Group Limited(HKG:3860)的每股收益表现非常糟糕,下跌了相当大的28%。过去30天的跌幅为29%,这给股东带来了艰难的一年。
即使在股价大幅下跌后,EPS Creative Health Technology Group的市销率(或“P/S”)目前仍然看起来相当“中庸”,与香港的奢侈品行业相比,因为它与更广泛的行业的市销率相匹配。然而,毫无解释地忽视市销率并不明智,因为投资者可能会忽视某种独特的机会或昂贵的错误。
SEHK: 3860市销率与行业板块相比,2024年6月16日
EPS Creative Health Technology Group近期的表现如何?
对于EPS Creative Health Technology Group,营业收入在过去一年中已经稳定增长,这通常不是一个坏结果。也许前景的预期是,短期内的营业收入增长将与更广泛的行业保持一致,这已经使市销率保持低位。如果不是这样,那么现有的股东可能对股价未来的方向并不太悲观。
尽管没有EPS Creative Health Technology Group的分析师评估数据可用,但看看这个免费的数据丰富的可视化工具,了解该公司在收益、营业收入和现金流方面的情况。
EPS Creative Health Technology Group预计有一些营收增长吗?
只有当公司的增长与行业接近时,看到像EPS Creative Health Technology Group这样的市销率才能让您放心。