Palinda Group Holdings Limited (HKG:8179) shares have continued their recent momentum with a 27% gain in the last month alone. Unfortunately, the gains of the last month did little to right the losses of the last year with the stock still down 42% over that time.
Even after such a large jump in price, it's still not a stretch to say that Palinda Group Holdings' price-to-sales (or "P/S") ratio of 0.3x right now seems quite "middle-of-the-road" compared to the Retail Distributors industry in Hong Kong, where the median P/S ratio is around 0.8x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.
SEHK:8179 Price to Sales Ratio vs Industry May 7th 2024
What Does Palinda Group Holdings' Recent Performance Look Like?
The revenue growth achieved at Palinda Group Holdings over the last year would be more than acceptable for most companies. Perhaps the market is expecting future revenue performance to only keep up with the broader industry, which has keeping the P/S in line with expectations. 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 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 Palinda Group Holdings' earnings, revenue and cash flow.
How Is Palinda Group Holdings' Revenue Growth Trending?
There's an inherent assumption that a company should be matching the industry for P/S ratios like Palinda Group Holdings' to be considered reasonable.
If we review the last year of revenue growth, the company posted a terrific increase of 26%. Pleasingly, revenue has also lifted 116% in aggregate from three years ago, thanks to the last 12 months of growth. Therefore, it's fair to say the revenue growth recently has been superb for the company.
Comparing that to the industry, which is only predicted to deliver 23% growth in the next 12 months, the company's momentum is stronger based on recent medium-term annualised revenue results.
In light of this, it's curious that Palinda Group Holdings' 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.
The Final Word
Palinda 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 We'd say the price-to-sales ratio's power isn't primarily as a valuation instrument but rather to gauge current investor sentiment and future expectations.
We didn't quite envision Palinda Group Holdings' P/S sitting in line with the wider industry, considering the revenue growth over the last three-year is higher than the current industry outlook. There could be some unobserved threats to revenue preventing the P/S ratio from matching this positive performance. 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.
Plus, you should also learn about these 4 warning signs we've spotted with Palinda Group Holdings (including 2 which are a bit unpleasant).
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.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
即使在價格大幅上漲之後,與香港零售分銷商行業相比,Palinda Group Holdings目前0.3倍的市銷率(或 “市盈率”)似乎相當 “中間路線”,Palinda Group Holdings的市銷率中位數約爲0.8倍,仍然不費吹灰之力。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。
SEHK: 8179 與行業的股價銷售比率 2024 年 5 月 7 日
帕琳達集團控股最近的表現如何?
Palinda Group Holdings去年實現的收入增長對於大多數公司來說是完全可以接受的。也許市場預計未來的收入表現只能跟上整個行業的步伐,這使市銷售率與預期一致。如果你喜歡這家公司,你希望情況並非如此,這樣你就有可能在它不太受青睞的情況下買入一些股票。
我們沒有分析師的預測,但您可以查看我們關於Palinda Group Holdings收益、收入和現金流的免費報告,了解最近的趨勢如何爲公司未來做好準備。