Despite an already strong run, Miko International Holdings Limited (HKG:1247) shares have been powering on, with a gain of 42% in the last thirty days. The last month tops off a massive increase of 170% in the last year.
After such a large jump in price, given close to half the companies operating in Hong Kong's Luxury industry have price-to-sales ratios (or "P/S") below 0.7x, you may consider Miko International Holdings as a stock to potentially avoid with its 2.3x P/S ratio. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the elevated P/S.
SEHK:1247 Price to Sales Ratio vs Industry July 21st 2024
How Miko International Holdings Has Been Performing
Revenue has risen at a steady rate over the last year for Miko International Holdings, which is generally not a bad outcome. Perhaps the market believes the recent revenue performance is strong enough to outperform the industry, which has inflated the P/S ratio. 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 Miko International Holdings' earnings, revenue and cash flow.
Do Revenue Forecasts Match The High P/S Ratio?
The only time you'd be truly comfortable seeing a P/S as high as Miko International Holdings' is when the company's growth is on track to outshine the industry.
Retrospectively, the last year delivered a decent 5.8% gain to the company's revenues. Pleasingly, revenue has also lifted 30% in aggregate from three years ago, partly thanks to the last 12 months of growth. So we can start by confirming that the company has done a great job of growing revenues over that time.
Comparing that to the industry, which is predicted to deliver 12% growth in the next 12 months, the company's momentum is weaker, based on recent medium-term annualised revenue results.
With this in mind, we find it worrying that Miko International Holdings' P/S exceeds that of its industry peers. It seems most investors are ignoring the fairly limited recent growth rates and are hoping for a turnaround in the company's business prospects. Only the boldest would assume these prices are sustainable as a continuation of recent revenue trends is likely to weigh heavily on the share price eventually.
The Key Takeaway
Miko International Holdings shares have taken a big step in a northerly direction, but its P/S is elevated as a result. Generally, our preference is to limit the use of the price-to-sales ratio to establishing what the market thinks about the overall health of a company.
The fact that Miko International Holdings currently trades on a higher P/S relative to the industry is an oddity, since its recent three-year growth is lower than the wider industry forecast. When we see slower than industry revenue growth but an elevated P/S, there's considerable risk of the share price declining, sending the P/S lower. If recent medium-term revenue trends continue, it will place shareholders' investments at significant risk and potential investors in danger of paying an excessive premium.
There are also other vital risk factors to consider before investing and we've discovered 2 warning signs for Miko International Holdings that you should be aware of.
If these risks are making you reconsider your opinion on Miko International Holdings, 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
尽管已经有一个很强劲的增长,但Miko International Holdings Limited (HKG:1247)的股票在过去的30天里上涨了42%。上个月的涨幅在过去一年中增长了170%。
由于香港半数以上的奢侈品行业公司的市销率 (或“P/S”) 低于0.7倍,所以考虑到Miko International Holdings的市销率为2.3倍,可以考虑避免购买这只股票。尽管如此,我们需要进一步挖掘,以确定高市销率背后的合理基础。
SEHK:1247 市销率与行业板块比较 2024年7月21日
Miko International Holdings的表现如何
Miko International Holdings的营业收入在过去的一年里保持着稳定增长,这通常不是一个坏结果。也许市场相信近期营收表现已经足够强劲,能够胜过整个行业,这也导致该公司市销率上涨。然而,如果情况并非如此,投资者可能会因为股票价格过高而受到损失。
我们没有分析师的预测,但您可以查看我们有关Miko International Holdings收入、营业收入和现金流的免费报告,以便更好地了解这家公司未来的发展趋势。
营业收入预测是否与高市销率相匹配?
只有当公司的增长跑赢整个行业时,市销率高达Miko International Holdings这个水平才是真正令人舒适的。
鉴于此,我们认为Miko International Holdings的市销率超过了其同行业公司。大多数投资者似乎忽视了公司近期的中等增长率,并希望该公司的业务前景出现好转。只有最大胆的人才会认为这些价格是可持续的,因为最近的营收趋势很可能会对股价产生沉重的打击。
重要提示
Miko International Holdings的股票取得了大幅增长,但是由于其市销率高,我们通常更喜欢将市销率用于确定市场对公司整体健康状况的看法。
Miko International Holdings目前的市销率相对于行业来说较高是一种奇怪现象,因为其近三年的营收增长比全行业预测要低。当我们看到营收增长低于行业的同时市销率却很高时,股价就有下跌的风险,从而降低市销率。如果近期中期营收趋势继续保持,将会对股东的投资和潜在投资者造成重大风险,并可能支付过高的溢价。
在投资之前,还需要考虑其他重要风险因素,我们发现了2个警告信号,这需要您知晓。
如果这些风险让您重新考虑了对Miko International Holdings的看法,请查看我们的高质量股票交互列表,以了解其他股票。