Enviro Energy International Holdings Limited (HKG:1102) shares have continued their recent momentum with a 111% gain in the last month alone. While recent buyers may be laughing, long-term holders might not be as pleased since the recent gain only brings the stock back to where it started a year ago.
Although its price has surged higher, it's still not a stretch to say that Enviro Energy International Holdings' price-to-sales (or "P/S") ratio of 0.1x right now seems quite "middle-of-the-road" compared to the Trade Distributors industry in Hong Kong, where the median P/S ratio is around 0.6x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.
How Has Enviro Energy International Holdings Performed Recently?
Enviro Energy International Holdings certainly has been doing a great job lately as it's been growing its revenue at a really rapid pace. It might be that many expect the strong revenue performance to wane, which has kept the share price, and thus the P/S ratio, from rising. Those who are bullish on Enviro Energy International Holdings will be hoping that this isn't the case, so that they can pick up the stock at a lower valuation.
Although there are no analyst estimates available for Enviro Energy International Holdings, take a look at this free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.
How Is Enviro Energy International Holdings' Revenue Growth Trending?
Enviro Energy International Holdings' 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, we see that the company's revenues underwent some rampant growth over the last 12 months. Spectacularly, three year revenue growth has also set the world alight, thanks to the last 12 months of incredible growth. Accordingly, shareholders would have been over the moon with those medium-term rates of revenue growth.
This is in contrast to the rest of the industry, which is expected to grow by 27% over the next year, materially lower than the company's recent medium-term annualised growth rates.
In light of this, it's curious that Enviro Energy International Holdings' P/S sits in line with the majority of other companies. It may be that most investors are not convinced the company can maintain its recent growth rates.
The Bottom Line On Enviro Energy International Holdings' P/S
Enviro Energy International 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 Using the price-to-sales ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects.
To our surprise, Enviro Energy International Holdings 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. While recent revenue trends over the past medium-term suggest that the risk of a price decline is low, investors appear to see the likelihood of revenue fluctuations in the future.
You always need to take note of risks, for example - Enviro Energy International Holdings has 4 warning signs we think you should be aware of.
It's important to make sure you look for a great company, not just the first idea you come across. So if growing profitability aligns with your idea of a great company, take a peek at this free list of interesting companies with strong recent earnings growth (and a low P/E).
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儘管其價格已經飆升,但可以毫不誇張地說,與香港的貿易分銷商行業相比,目前Enviro Energy International Holdings的0.1倍市銷率(或 “市盈率”)似乎相當 “處於中間位置”,香港的市銷率中位數約爲0.6倍。但是,如果市銷率沒有合理的基礎,投資者可能會忽略明顯的機會或潛在的挫折。
Enviro Energy 國際控股公司最近的表現如何?
Enviro Energy International Holdings最近確實做得很好,因爲其收入增長非常快。許多人可能預計,強勁的收入表現將減弱,這阻礙了股價乃至市銷售率的上升。那些看好Enviro Energy International Holdings的人希望情況並非如此,這樣他們就可以以較低的估值買入該股。
儘管沒有分析師對Enviro Energy International Holdings的估計,但看看這個免費的數據豐富的可視化圖表,看看該公司如何積累收益、收入和現金流。
Enviro Energy International Holdings的收入增長趨勢如何?
Enviro Energy International Holdings的市銷率對於一家預計只會實現適度增長且重要的是表現與行業持平的公司來說是典型的。
有鑑於此,奇怪的是,Enviro Energy International Holdings的市銷率與其他多數公司持平。可能是大多數投資者不相信該公司能夠維持其最近的增長率。
Enviro Energy International Holdings市銷率的底線
Enviro Energy International Holdings似乎再次受到青睞,股價穩步上漲,使其市銷率與業內其他公司保持一致。僅憑市銷比來確定是否應該出售股票是不明智的,但它可以作爲公司未來前景的實用指南。
令我們驚訝的是,Enviro Energy International Holdings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。儘管最近中期的收入趨勢表明價格下跌的風險很低,但投資者似乎看到了未來收入波動的可能性。
例如,您始終需要注意風險——Enviro Energy International Holdings有4個我們認爲您應該注意的警告信號。