To the annoyance of some shareholders, Worldgate Global Logistics Ltd (HKG:8292) shares are down a considerable 25% in the last month, which continues a horrid run for the company. The recent drop completes a disastrous twelve months for shareholders, who are sitting on a 89% loss during that time.
Although its price has dipped substantially, you could still be forgiven for feeling indifferent about Worldgate Global Logistics' P/S ratio of 0.2x, since the median price-to-sales (or "P/S") ratio for the Logistics industry in Hong Kong is about the same. 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:8292 Price to Sales Ratio vs Industry February 12th 2024
How Worldgate Global Logistics Has Been Performing
As an illustration, revenue has deteriorated at Worldgate Global Logistics over the last year, which is not ideal at all. One possibility is that the P/S is moderate because investors think the company might still do enough to be in line with the broader industry in the near future. 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 Worldgate Global Logistics' earnings, revenue and cash flow.
Do Revenue Forecasts Match The P/S Ratio?
Worldgate Global Logistics' 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.
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 11%. Even so, admirably revenue has lifted 59% in aggregate from three years ago, notwithstanding the last 12 months. Although it's been a bumpy ride, it's still fair to say the revenue growth recently has been more than adequate for the company.
This is in contrast to the rest of the industry, which is expected to grow by 4.8% over the next year, materially lower than the company's recent medium-term annualised growth rates.
In light of this, it's curious that Worldgate Global Logistics' P/S sits in line with the majority of other companies. Apparently some shareholders believe the recent performance is at its limits and have been accepting lower selling prices.
What We Can Learn From Worldgate Global Logistics' P/S?
With its share price dropping off a cliff, the P/S for Worldgate Global Logistics looks to be in line with the rest of the Logistics 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.
To our surprise, Worldgate Global Logistics revealed its three-year revenue trends aren't contributing to its P/S as much as we would have predicted, given they look better than current industry expectations. It'd be fair to assume that potential risks the company faces could be the contributing factor to the lower than expected P/S. At least the risk of a price drop looks to be subdued if recent medium-term revenue trends continue, but investors seem to think future revenue could see some volatility.
You should always think about risks. Case in point, we've spotted 3 warning signs for Worldgate Global Logistics you should be aware of, and 2 of them are concerning.
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).
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令一些股東感到煩惱的是,Worldgate Global Logistics Ltd(HKG: 8292)的股價在上個月下跌了25%,這延續了該公司的糟糕表現。對於股東來說,最近的下跌結束了災難性的十二個月,在此期間,股東虧損了89%。
儘管其價格已大幅下跌,但您對Worldgate Global Logistics的0.2倍市盈率漠不關心仍然是可以原諒的,因爲香港物流業的中位市銷率(或 “市銷率”)大致相同。儘管這可能不會引起任何關注,但如果市銷率不合理,投資者可能會錯過潛在的機會或無視迫在眉睫的失望情緒。
有鑑於此,奇怪的是,Worldgate Global Logistics的市銷率與其他多數公司持平。顯然,一些股東認爲最近的表現已達到極限,並一直在接受較低的銷售價格。
我們可以從Worldgate Global Logistics的市銷率中學到什麼?
隨着股價跌下懸崖,Worldgate Global Logistics的市銷率似乎與其他物流行業持平。儘管市銷率不應該成爲決定你是否買入股票的決定性因素,但它是衡量收入預期的有力晴雨表。
令我們驚訝的是,Worldgate Global Logistics透露,其三年收入趨勢對市銷率的貢獻沒有我們預期的那麼大,因爲這些趨勢看起來好於當前的行業預期。可以公平地假設,公司面臨的潛在風險可能是市銷率低於預期的促成因素。如果近期的中期收入趨勢持續下去,至少價格下跌的風險似乎有所減弱,但投資者似乎認爲未來的收入可能會出現一些波動。
你應該時刻考慮風險。舉個例子,我們發現了你應該注意的Worldgate Global Logistics的3個警告信號,其中兩個是令人擔憂的。