Yuk Wing Group Holdings Limited (HKG:1536) shareholders would be excited to see that the share price has had a great month, posting a 31% gain and recovering from prior weakness. Unfortunately, the gains of the last month did little to right the losses of the last year with the stock still down 21% over that time.
Even after such a large jump in price, there still wouldn't be many who think Yuk Wing Group Holdings' price-to-sales (or "P/S") ratio of 0.3x is worth a mention when the median P/S in Hong Kong's Machinery industry is similar at about 0.6x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.
What Does Yuk Wing Group Holdings' Recent Performance Look Like?
For example, consider that Yuk Wing Group Holdings' financial performance has been poor lately as its revenue has been in decline. Perhaps investors believe the recent revenue performance is enough to keep in line with the industry, which is keeping the P/S from dropping off. If you like the company, you'd at least be hoping this is the case so that you could potentially pick up some stock while it's not quite in favour.
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 Yuk Wing Group Holdings' earnings, revenue and cash flow.
Do Revenue Forecasts Match The P/S Ratio?
In order to justify its P/S ratio, Yuk Wing Group Holdings would need to produce growth that's similar to the industry.
Taking a look back first, the company's revenue growth last year wasn't something to get excited about as it posted a disappointing decline of 5.6%. Even so, admirably revenue has lifted 39% in aggregate from three years ago, notwithstanding the last 12 months. Accordingly, while they would have preferred to keep the run going, shareholders would definitely welcome the medium-term rates of revenue growth.
This is in contrast to the rest of the industry, which is expected to grow by 14% over the next year, materially higher than the company's recent medium-term annualised growth rates.
In light of this, it's curious that Yuk Wing Group Holdings' P/S sits in line with the majority of other companies. It seems most investors are ignoring the fairly limited recent growth rates and are willing to pay up for exposure to the stock. They may be setting themselves up for future disappointment if the P/S falls to levels more in line with recent growth rates.
What Does Yuk Wing Group Holdings' P/S Mean For Investors?
Yuk Wing Group Holdings appears to be back in favour with a solid price jump bringing its P/S back in line with other companies in the industry While the price-to-sales ratio shouldn't be the defining factor in whether you buy a stock or not, it's quite a capable barometer of revenue expectations.
We've established that Yuk Wing Group Holdings' average P/S is a bit surprising since its recent three-year growth is lower than the wider industry forecast. Right now we are uncomfortable with the P/S as this revenue performance isn't likely to support a more positive sentiment for long. Unless there is a significant improvement in the company's medium-term performance, it will be difficult to prevent the P/S ratio from declining to a more reasonable level.
Before you take the next step, you should know about the 3 warning signs for Yuk Wing Group Holdings (2 are a bit unpleasant!) that we have uncovered.
If companies with solid past earnings growth is up your alley, you may wish to see this free collection of other companies with strong earnings growth and low P/E ratios.
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Yuk Wing Group Holdings Limited(HKG:1536)的股东们会为股价在过去一个月取得的31%的收益感到兴奋,并且从先前的低点中恢复。不幸的是,上个月的收益并没有弥补过去一年里股价下跌21%的损失。
即使股价大幅上涨,仍然没有多少人认为Yuk Wing Group Holdings的市销率(或者"P/S")0.3倍值得一提,因为香港机械行业的中位数市销率约为0.6倍。然而,如果对于P/S没有合理的基础,投资者可能会忽视一个明显的机会或潜在的挫折。
Yuk Wing Group Holdings的最近表现如何?
例如,考虑到Yuk Wing Group Holdings的财务表现最近不佳,因为其营业收入一直在下降。也许投资者认为最近的营业收入表现足以与行业保持一致,这也使得市销率没有下滑。如果你喜欢这家公司,你至少会希望情况是这样的,这样你至少可以在股票还没有受到青睐的时候有机会买入一些股票。
我们没有分析师预测,但你可以通过查看我们关于Yuk Wing Group Holdings收益、营业收入和现金流的免费报告,来了解最近的趋势如何为公司的未来做准备。