Basetrophy Group Holdings Limited (HKG:8460) shareholders that were waiting for something to happen have been dealt a blow with a 54% share price drop in the last month. The recent drop completes a disastrous twelve months for shareholders, who are sitting on a 60% loss during that time.
In spite of the heavy fall in price, there still wouldn't be many who think Basetrophy Group Holdings' price-to-sales (or "P/S") ratio of 0.3x is worth a mention when it essentially matches the median P/S in Hong Kong's Construction industry. While this might not raise any eyebrows, if the P/S ratio is not justified investors could be missing out on a potential opportunity or ignoring looming disappointment.
SEHK:8460 Price to Sales Ratio vs Industry July 12th 2024
How Has Basetrophy Group Holdings Performed Recently?
The revenue growth achieved at Basetrophy Group Holdings over the last year would be more than acceptable for most companies. It might be that many expect the respectable revenue performance to wane, which has kept the P/S from rising. If that doesn't eventuate, then existing shareholders probably aren't too pessimistic about the future direction of the share price.
Want the full picture on earnings, revenue and cash flow for the company? Then our free report on Basetrophy Group Holdings will help you shine a light on its historical performance.
Do Revenue Forecasts Match The P/S Ratio?
Basetrophy Group 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.
Retrospectively, the last year delivered a decent 12% gain to the company's revenues. Ultimately though, it couldn't turn around the poor performance of the prior period, with revenue shrinking 11% in total over the last three years. So unfortunately, we have to acknowledge that the company has not done a great job of growing revenue over that time.
In contrast to the company, the rest of the industry is expected to grow by 10% over the next year, which really puts the company's recent medium-term revenue decline into perspective.
With this information, we find it concerning that Basetrophy Group Holdings is trading at a fairly similar P/S compared to the industry. Apparently many investors in the company are way less bearish than recent times would indicate and aren't willing to let go of their stock right now. There's a 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.
What Does Basetrophy Group Holdings' P/S Mean For Investors?
With its share price dropping off a cliff, the P/S for Basetrophy Group Holdings looks to be in line with the rest of the Construction 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 look at Basetrophy Group Holdings revealed its shrinking revenues over the medium-term haven't impacted the P/S as much as we anticipated, given the industry is set to grow. When we see revenue heading backwards in the context of growing industry forecasts, it'd make sense to expect a possible share price decline on the horizon, sending the moderate P/S lower. If recent medium-term revenue trends continue, it will place shareholders' investments at risk and potential investors in danger of paying an unnecessary premium.
There are also other vital risk factors to consider before investing and we've discovered 4 warning signs for Basetrophy Group Holdings that you should be aware of.
If strong companies turning a profit tickle your fancy, then you'll want to check out this free list of interesting companies that trade on a low P/E (but have proven they can grow earnings).
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.
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Basetrophy Group Holdings Limited(HKG:8460)的股东们希望看到一些变化,但在过去一个月股价下跌54%,他们遭受了重创。这次急剧下跌又给股东带来了灾难性的12个月,此期间他们遭受了60%的损失。
尽管股价大幅下跌,但当它基本上与香港建造业的中位数市销率匹配时,扣除了Basetrophy Group Holdings的市销率(或简称"P/S")为0.3x的分析人士寥寥无几。虽然这可能不会引起任何人的注意,但如果市销率没有得到证明,投资者可能会错失潜在的机会或忽略即将到来的失望。
SEHK:8460市销率与行业之比2024年7月12日
Basetrophy Group Holdings 近期表现如何?
Basetrophy Group Holdings在过去一年实现的营收增长对于大多数公司来说是可以接受的。可能是因为许多人认为值得期待的收入表现将会减弱,这就使得市销率没有上涨。如果这种情况得以实现,则现有股东对股价未来走势可能并不悲观。
想要了解公司的收益、营收和现金流的全部情况吗? 那么查阅我们关于Basetrophy Group Holdings的免费报告可以帮助你了解其历史表现。
营业收入预测与市销率是否匹配?
Basetrophy Group Holdings的市销率对于一个预计只能提供适度增长且重要的公司表现与行业板块相匹配的公司来说是典型的。
考虑到这一点,我们认为Basetrophy Group Holdings的市销率比行业内其他公司的市销率相当,这让我们感到担忧。显然,该公司的许多投资者要比最近的时期看起来要少看淡,现阶段不愿放弃他们的股票。如果市销率下跌到与最近负增长率更为一致的水平,现有股东很可能正在为未来的失望做好了准备。
Basetrophy Group Holdings市销率对于投资者意味着什么?
随着其股价暴跌,Basetrophy Group Holdings的市销率似乎与建造业的其他公司相当。虽然有些人认为市销率是某些行业内部价值的不良指标,但它可以成为一个强有力的商业情绪指标。
我们对Basetrophy Group Holdings的观察显示,该公司的中长期收入呈下降趋势,并没有像预期的那样对市销率产生太大影响,而产业仍在增长。当我们看到收入在产业增长的背景下出现逆势走低时,可以预期可能会出现潜在的股价下跌局面,使得市销率下降。如果中长期收入趋势继续下降,那么可能会对股东的投资产生风险,并使潜在投资者面临支付不必要溢价的风险。
在投资之前,还有其他重要的风险因素需要考虑,我们已发现Basetrophy Group Holdings存在4个警告信号,您需要知道。