Despite an already strong run, CA Cultural Technology Group Limited (HKG:1566) shares have been powering on, with a gain of 37% in the last thirty days. 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.
Even after such a large jump in price, when close to half the companies operating in Hong Kong's Hospitality industry have price-to-sales ratios (or "P/S") above 0.9x, you may still consider CA Cultural Technology Group as an enticing stock to check out with its 0.1x 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:1566 Price to Sales Ratio vs Industry June 5th 2024
What Does CA Cultural Technology Group's Recent Performance Look Like?
For example, consider that CA Cultural Technology Group's financial performance has been pretty ordinary lately as revenue growth is non-existent. One possibility is that the P/S is low because investors think this benign revenue growth rate will likely underperform the broader industry in the near future. Those who are bullish on CA Cultural Technology Group 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 CA Cultural Technology Group, take a look at this free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.
Is There Any Revenue Growth Forecasted For CA Cultural Technology Group?
In order to justify its P/S ratio, CA Cultural Technology 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 19% shows it's noticeably less attractive.
With this information, we can see why CA Cultural Technology Group is trading at a P/S lower than the industry. Apparently many shareholders weren't comfortable holding on to something they believe will continue to trail the wider industry.
What Does CA Cultural Technology Group's P/S Mean For Investors?
CA Cultural Technology Group's stock price has surged recently, but its but its P/S still remains modest. While the price-to-sales ratio shouldn't be the defining factor in whether you buy a stock or not, it's quite a capable barometer of revenue expectations.
Our examination of CA Cultural Technology Group confirms that the company's revenue trends over the past three-year years are a key factor in its low price-to-sales ratio, as we suspected, given they fall short of 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.
Plus, you should also learn about these 5 warning signs we've spotted with CA Cultural Technology Group.
If you're unsure about the strength of CA Cultural Technology Group's business, why not explore our interactive list of stocks with solid business fundamentals for some other companies you may have missed.
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.
儘管CA Cultural Technology Group Limited (HKG:1566)股票已經運行良好,但在過去30天中漲幅達37%。雖然最近的買家可能會感到高興,但長揸者可能不會感到高興,因爲最近的漲幅僅僅使股票回到了一年前的水平。
即使是在價格躍升如此之大的情況下,在香港酒店業有接近一半的公司市銷率(或“P/S”)高於0.9x時,您仍然可以考慮CA Cultural Technology Group,因爲它的市銷率只有0.1x。然而,股票的市銷率可能之所以低是有原因的,需要進一步調查以確定是否合理。
SEHK:1566市銷率與行業板塊比較2024年6月5日
CA Cultural Technology Group的近期表現如何?
例如,考慮到CA Cultural Technology Group的財務表現最近相當普通,因爲營收增長不存在。一個可能性是,市銷率低是因爲投資者認爲,這種良性的營收增長率在不久的將來可能會表現比整個行業更差。看好CA Cultural Technology Group的人希望這不是事實,這樣他們就可以以更低的估值買入股票。
儘管沒有CA Cultural Technology Group的分析師預期,但查看這個免費的數據豐富的可視化圖表,可以讓您了解公司在收入、營收和現金流方面的情況。
CA Cultural Technology Group有沒有營收增長預測?
爲了證明其市銷率合理,CA Cultural Technology Group需要產生萎靡不振的增長,而這種增長要落後於整個行業。
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。
與行業預計一年增長19%的一年生長預測相比,最近的中期營收趨勢明顯不太有吸引力。
有了這些信息,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。
CA Cultural Technology Group的市銷率對投資者意味着什麼?
CA Cultural Technology Group的股票價格最近大漲,但其市銷率仍然保持適度。市銷率不應該是是否購買股票的決定性因素,但它是收入預期的相當可靠的晴雨表。
我們對CA Cultural Technology Group的研究證實了,在過去三年中,公司的營業收入趨勢是其低市銷率的關鍵因素。由於公司的營業收入低於當前行業預期,因此市場預期其有改善的潛力不足以證明其高市銷率合理。除非最近的中期條件得到改善,否則它們將繼續形成股價在這些水平左右的障礙。
此外,您還應該了解CA Cultural Technology Group的這5個警示信號。
如果您對CA Cultural Technology Group的業務不確定,爲什麼不瀏覽我們的交互式公司清單,其中包含一些其他公司您可能錯過的具有良好業務基礎的股票。