Zhejiang Wecome Pharmaceutical's high P/S ratio is alarming considering its recent revenue drop. This trend could jeopardize shareholders' investments and deter potential investors. The share price might decrease, making the P/S more reasonable.
Despite Zhejiang Wecome Pharmaceutical's stock rise, the company's performance appears uncertain with low ROE and decline in net income over the past five years. Investors may not be benefitting from the reinvestment of profits due to low earnings growth.