Cherish Sunshine International Limited (HKG:1094) shareholders are no doubt pleased to see that the share price has bounced 47% in the last month, although it is still struggling to make up recently lost ground. Still, the 30-day jump doesn't change the fact that longer term shareholders have seen their stock decimated by the 65% share price drop in the last twelve months.
In spite of the firm bounce in price, Cherish Sunshine International may still be sending buy signals at present with its price-to-sales (or "P/S") ratio of 0.2x, considering almost half of all companies in the IT industry in Hong Kong have P/S ratios greater than 1x and even P/S higher than 3x aren't out of the ordinary. However, the P/S might be low for a reason and it requires further investigation to determine if it's justified.
SEHK:1094 Price to Sales Ratio vs Industry August 15th 2024
How Has Cherish Sunshine International Performed Recently?
With revenue growth that's exceedingly strong of late, Cherish Sunshine International has been doing very well. It might be that many expect the strong revenue performance to degrade substantially, which has repressed the P/S ratio. Those who are bullish on Cherish Sunshine International will be hoping that this isn't the case, so that they can pick up the stock at a lower valuation.
Want the full picture on earnings, revenue and cash flow for the company? Then our free report on Cherish Sunshine International will help you shine a light on its historical performance.
How Is Cherish Sunshine International's Revenue Growth Trending?
Cherish Sunshine International's P/S ratio would be typical for a company that's only expected to deliver limited growth, and importantly, perform worse than the industry.
If we review the last year of revenue growth, the company posted a terrific increase of 188%. The latest three year period has also seen an incredible overall rise in revenue, aided by its incredible short-term performance. Accordingly, shareholders would have been over the moon with those medium-term rates of revenue growth.
Comparing that recent medium-term revenue trajectory with the industry's one-year growth forecast of 13% shows it's noticeably more attractive.
With this in mind, we find it intriguing that Cherish Sunshine International's P/S isn't as high compared to that of its industry peers. Apparently some shareholders believe the recent performance has exceeded its limits and have been accepting significantly lower selling prices.
What Does Cherish Sunshine International's P/S Mean For Investors?
Despite Cherish Sunshine International's share price climbing recently, its P/S still lags most other companies. Typically, we'd caution against reading too much into price-to-sales ratios when settling on investment decisions, though it can reveal plenty about what other market participants think about the company.
We're very surprised to see Cherish Sunshine International currently trading on a much lower than expected P/S since its recent three-year growth is higher than the wider industry forecast. Potential investors that are sceptical over continued revenue performance may be preventing the P/S ratio from matching previous strong performance. It appears many are indeed anticipating revenue instability, because the persistence of these recent medium-term conditions would normally provide a boost to the share price.
You need to take note of risks, for example - Cherish Sunshine International has 4 warning signs (and 1 which is concerning) we think you should know about.
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.
虽然仍在努力追趁最近失去的颓势,但 Cherish Sunshine International Limited (HKG:1094) 的股价在过去一个月里已经上涨了47%,这对股东来说无疑是个好消息。但从较长期股东的角度来看,股价在过去十二个月里跌了65%,所以这30天的上涨并没有改变更长期的事实。
尽管 Cherish Sunshine International 最近有股价反弹,但考虑到香港信息技术行业中近一半的公司 P/S 比率大于1倍,甚至 P/S 比率高于3倍也不足为奇,因此 Cherish Sunshine International 目前的 0.2x 市销率(“P/S”)比率仍然可以发出买入信号。但是, P/S 可能之所以较低,是有其原因的,需要进一步调查以确定是否合理。
SEHK:1094 市销率与行业的比较 2024年8月15日
Cherish Sunshine International 近期的表现如何?
随着收入强劲增长,Cherish Sunshine International 近期表现非常出色。可能有很多人预计其强劲的收入表现将大幅下滑,这已经压制了 P/S 比率。看好 Cherish Sunshine International 的人们希望这不是事实,以便他们能以较低的估值买入股票。
您想了解公司的收益、收入和现金流的整体情况吗?那么 Cherish Sunshine International 的免费报告将帮助您了解其历史表现。
Cherish Sunshine International 的营业收入增长如何?
Cherish Sunshine International 的 P/S 比率对于那些只预期提供有限增长,特别是预期表现不如行业的公司而言是典型的。
比较最近中期的收入增长轨迹及行业未来一年的增长预测,Cherish Sunshine International 显然更具吸引力。
考虑到这一点,我们发现 Cherish Sunshine International 的 P/S 比率相对于其他同行并不高。显然,一些股东认为最近的表现已经超出了其极限,并已接受了明显较低的出售价格。
Cherish Sunshine International 的 P/S 比率对于投资者意味着什么?
尽管 Cherish Sunshine International 的股价最近有所上涨,但其 P / S 比率仍落后于大多数其他公司。通常情况下,我们不建议在决策投资时过分关注价格销售比率,但它确实可以揭示其他市场参与者对该公司的看法。
我们非常惊讶地看到 Cherish Sunshine International 当前的 P / S 远低于预期,因为其最近三年的增长高于更广泛的行业预测。对于质疑持续营收表现的潜在投资者可能会阻止 P / S 比率与之前的强劲表现相匹配。许多人似乎确实预计收入不稳定,因为最近的中期情况的持久性通常会提高股价。
您需要注意风险,例如 - Cherish Sunshine International 具有4个警告标志(其中1个令人担忧),我们认为您应该知道。