YLZ Information Technology Co.,Ltd (SZSE:300096) shareholders are no doubt pleased to see that the share price has bounced 27% in the last month, although it is still struggling to make up recently lost ground. Not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 38% in the last twelve months.
In spite of the firm bounce in price, YLZ Information TechnologyLtd's price-to-sales (or "P/S") ratio of 2.5x might still make it look like a strong buy right now compared to the wider Software industry in China, where around half of the companies have P/S ratios above 5.2x and even P/S above 9x are quite common. However, the P/S might be quite low for a reason and it requires further investigation to determine if it's justified.
SZSE:300096 Price to Sales Ratio vs Industry March 6th 2024
How Has YLZ Information TechnologyLtd Performed Recently?
For instance, YLZ Information TechnologyLtd's receding revenue in recent times would have to be some food for thought. It might be that many expect the disappointing revenue performance to continue or accelerate, which has repressed the P/S. If you like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's out of favour.
Want the full picture on earnings, revenue and cash flow for the company? Then our free report on YLZ Information TechnologyLtd will help you shine a light on its historical performance.
How Is YLZ Information TechnologyLtd's Revenue Growth Trending?
The only time you'd be truly comfortable seeing a P/S as depressed as YLZ Information TechnologyLtd's is when the company's growth is on track to lag the industry decidedly.
Retrospectively, the last year delivered a frustrating 2.3% decrease to the company's top line. The last three years don't look nice either as the company has shrunk revenue by 32% in aggregate. Accordingly, shareholders would have felt downbeat about the medium-term rates of revenue growth.
Comparing that to the industry, which is predicted to deliver 33% growth in the next 12 months, the company's downward momentum based on recent medium-term revenue results is a sobering picture.
In light of this, it's understandable that YLZ Information TechnologyLtd's P/S would sit below the majority of other companies. However, we think shrinking revenues are unlikely to lead to a stable P/S over the longer term, which could set up shareholders for future disappointment. There's potential for the P/S to fall to even lower levels if the company doesn't improve its top-line growth.
What Does YLZ Information TechnologyLtd's P/S Mean For Investors?
YLZ Information TechnologyLtd's recent share price jump still sees fails to bring its P/S alongside the industry median. 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.
As we suspected, our examination of YLZ Information TechnologyLtd revealed its shrinking revenue over the medium-term is contributing to its low P/S, given the industry is set to grow. Right now shareholders are accepting the low P/S as they concede future revenue probably won't provide any pleasant surprises either. Unless the recent medium-term conditions improve, they will continue to form a barrier for the share price around these levels.
There are also other vital risk factors to consider before investing and we've discovered 2 warning signs for YLZ Information TechnologyLtd that you should be aware of.
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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儘管股價出現反彈,但YLZ Information TechnologyLtd的2.5倍市銷率(或 “市銷率”)與中國整個軟件行業相比,目前仍可能看起來像是一個強勁的買盤。在中國,大約一半的公司的市銷率高於5.2倍,甚至市盈率高於9倍也很常見。但是,市銷率可能很低是有原因的,需要進一步調查以確定其是否合理。
2024 年 3 月 6 日,深圳證券交易所:300096 對比行業的市銷率
YLZ信息技術有限公司最近的表現如何?
例如,YLZ Information TechnologyLtd最近收入的下降值得深思。許多人可能預計,令人失望的收入表現將持續或加速,這抑制了市銷率。如果你喜歡這家公司,你會希望情況並非如此,這樣你就有可能在股票失寵的時候買入一些股票。
想全面了解公司的收益、收入和現金流嗎?那麼我們關於YLZ Information TechnologyLtd的免費報告將幫助您了解其歷史表現。
YLZ信息技術有限公司的收入增長趨勢如何?
只有當公司的增長有望明顯落後於該行業時,你才能真正放心地看到像YLZ Information TechnologyLtd一樣低迷的市銷率。
YLZ Information TechnologyLtd最近的股價上漲仍未能使其市銷率與行業中位數並駕齊驅。僅使用市銷率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。
正如我們所懷疑的那樣,我們對YLZ Information TechnologyLtd的審查顯示,鑑於該行業即將增長,其中期收入萎縮是其市銷售率低的原因。目前,股東們正在接受低市銷率,因爲他們承認未來的收入可能也不會帶來任何驚喜。除非最近的中期狀況有所改善,否則它們將繼續構成股價在這些水平附近的障礙。
在投資之前,還有其他重要的風險因素需要考慮,我們已經發現了YLZ Information TechnologyLtd的兩個警告信號,你應該注意這些信號。