Hidili Industry International Development Limited (HKG:1393) shares have had a really impressive month, gaining 26% after a shaky period beforehand. Still, the 30-day jump doesn't change the fact that longer term shareholders have seen their stock decimated by the 69% share price drop in the last twelve months.
Although its price has surged higher, given about half the companies operating in Hong Kong's Oil and Gas industry have price-to-sales ratios (or "P/S") above 0.8x, you may still consider Hidili Industry International Development as an attractive investment with its 0.2x P/S ratio. However, the P/S might be low for a reason and it requires further investigation to determine if it's justified.
SEHK:1393 Price to Sales Ratio vs Industry May 24th 2024
How Hidili Industry International Development Has Been Performing
For instance, Hidili Industry International Development's receding revenue in recent times would have to be some food for thought. One possibility is that the P/S is low because investors think the company won't do enough to avoid underperforming the broader industry in the near future. However, if this doesn't eventuate then existing shareholders may be feeling optimistic about the future direction of the share price.
Want the full picture on earnings, revenue and cash flow for the company? Then our free report on Hidili Industry International Development will help you shine a light on its historical performance.
Is There Any Revenue Growth Forecasted For Hidili Industry International Development?
There's an inherent assumption that a company should underperform the industry for P/S ratios like Hidili Industry International Development's to be considered reasonable.
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 43%. However, a few very strong years before that means that it was still able to grow revenue by an impressive 82% in total over the last three years. Accordingly, while they would have preferred to keep the run going, shareholders would definitely welcome the medium-term rates of revenue growth.
Comparing that to the industry, which is only predicted to deliver 1.7% growth in the next 12 months, the company's momentum is stronger based on recent medium-term annualised revenue results.
With this in mind, we find it intriguing that Hidili Industry International Development's P/S isn't as high compared to that of its industry peers. It looks like most investors are not convinced the company can maintain its recent growth rates.
What Does Hidili Industry International Development's P/S Mean For Investors?
Despite Hidili Industry International Development's share price climbing recently, its P/S still lags most other companies. 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.
We're very surprised to see Hidili Industry International Development currently trading on a much lower than expected P/S since its recent three-year growth is higher than the wider industry forecast. When we see strong revenue with faster-than-industry growth, we assume there are some significant underlying risks to the company's ability to make money which is applying downwards pressure on the P/S ratio. It appears many are indeed anticipating revenue instability, because the persistence of these recent medium-term conditions would normally provide a boost to the share price.
You should always think about risks. Case in point, we've spotted 1 warning sign for Hidili Industry International Development you should be aware of.
If these risks are making you reconsider your opinion on Hidili Industry International Development, explore our interactive list of high quality stocks to get an idea of what else is out there.
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例如,Hidili Industry Industry Industry International Development最近收入的下降值得深思。一種可能性是市銷率很低,因爲投資者認爲公司在不久的將來在避免整個行業表現不佳方面做得還不夠。但是,如果最終沒有發生這種情況,那麼現有股東可能會對股價的未來走向感到樂觀。
考慮到這一點,我們發現有趣的是,Hidili Industry Industry Industry International Development的市銷率與業內同行相比沒有那麼高。看來大多數投資者不相信該公司能夠維持其最近的增長率。
恒地工業國際發展的市銷率對投資者意味着什麼?
儘管Hidili Industry Industry International Development最近股價上漲,但其市銷率仍然落後於大多數其他公司。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。
我們非常驚訝地看到,Hidili Industry Industry Industry Industrial Development目前的市銷率遠低於預期,因爲其最近三年的增長高於整個行業的預測。當我們看到強勁的收入和快於行業的增長速度時,我們假設公司的盈利能力存在一些重大的潛在風險,這給市銷率帶來了下行壓力。看來許多人確實在預測收入不穩定,因爲近期這些中期狀況的持續下去通常會提振股價。
你應該時刻考慮風險。舉個例子,我們發現了你應該注意的Hidili Industry Industry 國際發展的一個警告信號。