Poly Union Chemical Holding Group Co., Ltd. (SZSE:002037) shareholders would be excited to see that the share price has had a great month, posting a 27% gain and recovering from prior weakness. Not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 19% in the last twelve months.
Even after such a large jump in price, Poly Union Chemical Holding Group's price-to-sales (or "P/S") ratio of 0.5x might still make it look like a buy right now compared to the Chemicals industry in China, where around half of the companies have P/S ratios above 2.1x and even P/S above 5x are quite common. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's limited.
SZSE:002037 Price to Sales Ratio vs Industry May 31st 2024
How Poly Union Chemical Holding Group Has Been Performing
We'd have to say that with no tangible growth over the last year, Poly Union Chemical Holding Group's revenue has been unimpressive. It might be that many expect the uninspiring revenue performance to worsen, 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 Poly Union Chemical Holding Group will help you shine a light on its historical performance.
What Are Revenue Growth Metrics Telling Us About The Low P/S?
In order to justify its P/S ratio, Poly Union Chemical Holding Group would need to produce sluggish growth that's trailing the industry.
Retrospectively, the last year delivered virtually the same number to the company's top line as the year before. Likewise, not much has changed from three years ago as revenue have been stuck during that whole time. So it seems apparent to us that the company has struggled to grow revenue meaningfully over that time.
Comparing the recent medium-term revenue trends against the industry's one-year growth forecast of 23% shows it's noticeably less attractive.
In light of this, it's understandable that Poly Union Chemical Holding Group's P/S sits below the majority of other companies. It seems most investors are expecting to see the recent limited growth rates continue into the future and are only willing to pay a reduced amount for the stock.
The Key Takeaway
The latest share price surge wasn't enough to lift Poly Union Chemical Holding Group's P/S close to the industry median. Typically, we'd caution against reading too much into price-to-sales ratios when settling on investment decisions, though it can reveal plenty about what other market participants think about the company.
As we suspected, our examination of Poly Union Chemical Holding Group revealed its three-year revenue trends are contributing to its low P/S, given they look worse than current industry expectations. At this stage investors feel the potential for an improvement in revenue isn't great enough to justify a higher P/S ratio. Unless the recent medium-term conditions improve, they will continue to form a barrier for the share price around these levels.
Don't forget that there may be other risks. For instance, we've identified 3 warning signs for Poly Union Chemical Holding Group (2 shouldn't be ignored) you should be aware of.
Of course, profitable companies with a history of great earnings growth are generally safer bets. So you may wish to see this free collection of other companies that have reasonable P/E ratios and have grown earnings strongly.
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.
即使在股價大幅上漲後,保利聯合(Poly Union Chemical Holding Group)目前的市銷率仍爲0.5倍,與中國化學品行業相比仍然看起來像是一個買入機會。中國約一半的公司市銷率在2.1倍以上,市銷率高於5倍的公司也很常見。儘管如此,僅僅看市銷率並不明智,因爲市銷率有限可能有解釋。
SZSE:002037市銷率與行業板塊之比2024年5月31日
保利聯合(Poly Union Chemical Holding Group)的經營業績如何?
過去一年中,保利聯合(Poly Union Chemical Holding Group)的營業收入表現不佳,沒有可觀的增長。可能有許多人預計這種令人失望的營收表現會進一步惡化,這已經壓制了市銷率。如果你喜歡這家公司,你會希望這不是事實,這樣你就可以在它不受青睞的時候購買一些股票。
想全面了解該公司的收入、營業收入和現金流狀況嗎?我們的免費保利聯合(Poly Union Chemical Holding Group)報告將幫助您照亮其歷史表現。
營收增長指標告訴我們關於低市銷率的什麼?
爲了證明其市銷率,保利聯合(Poly Union Chemical Holding Group)需要產生落後於行業的緩慢增長。
回顧過去一年,公司的營業收入與前一年基本相同。同樣,在三年前也沒有太多變化,營業收入一直處於停滯狀態。因此,我們認爲公司在那段時間內難以實現營業收入的有意義增長。通過這些信息,我們可以看到爲什麼CA Cultural Technology Group的市銷率低於行業水平。顯然,許多股東不願持有一些他們認爲將繼續落後於整個行業的股票。
將最近的中期營收趨勢與行業的一年增長預測相比較,可以看出它的吸引力明顯較低。
鑑於此,保利聯合(Poly Union Chemical Holding Group)的市銷率低於大多數公司是可以理解的。似乎大部分投資者都預計最近的有限增長率將繼續延續到未來,並且只願意爲股票支付較少的價格。
重要提示
最新的股價飆升並不足以使保利聯合(Poly Union Chemical Holding Group)的市銷率接近行業中位數。通常情況下,我們會警告不要過於看重市銷率來進行投資決策,但它可以揭示其他市場參與者對該公司的看法。
正如我們所懷疑的那樣,我們對保利聯合(Poly Union Chemical Holding Group)的檢查顯示,其三年的營業收入趨勢正在導致其低市銷率,因爲它們看起來比當前行業預期更糟糕。目前投資者認爲,未來營收改善的潛力不足以證明更高的市銷率。除非最近中期條件得到改善,否則它們將繼續形成股價在這些水平周圍的障礙。
不要忘記,可能還存在其他風險。例如,我們已經發現了保利聯合(Poly Union Chemical Holding Group)的3個警示信號(2個不應忽視),您應該注意。