The Miko International Holdings Limited (HKG:1247) share price has done very well over the last month, posting an excellent gain of 80%. The last 30 days bring the annual gain to a very sharp 62%.
Following the firm bounce in price, you could be forgiven for thinking Miko International Holdings is a stock not worth researching with a price-to-sales ratios (or "P/S") of 1.7x, considering almost half the companies in Hong Kong's Luxury industry have P/S ratios below 0.7x. However, the P/S might be high for a reason and it requires further investigation to determine if it's justified.
SEHK:1247 Price to Sales Ratio vs Industry June 5th 2024
How Miko International Holdings Has Been Performing
The recent revenue growth at Miko International Holdings would have to be considered satisfactory if not spectacular. Perhaps the market believes the recent revenue performance is strong enough to outperform the industry, which has inflated the P/S ratio. If not, then existing shareholders may be a little nervous about the viability of the share price.
Although there are no analyst estimates available for Miko International Holdings, take a look at this free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.
How Is Miko International Holdings' Revenue Growth Trending?
In order to justify its P/S ratio, Miko International Holdings would need to produce impressive growth in excess of the industry.
If we review the last year of revenue growth, the company posted a worthy increase of 5.8%. The latest three year period has also seen an excellent 30% overall rise in revenue, aided somewhat by its short-term performance. Therefore, it's fair to say the revenue growth recently has been superb for the company.
This is in contrast to the rest of the industry, which is expected to grow by 13% over the next year, materially higher than the company's recent medium-term annualised growth rates.
With this information, we find it concerning that Miko International Holdings is trading at a P/S higher than the industry. It seems most investors are ignoring the fairly limited recent growth rates and are hoping for a turnaround in the company's business prospects. There's a good chance existing shareholders are setting themselves up for future disappointment if the P/S falls to levels more in line with recent growth rates.
The Key Takeaway
The large bounce in Miko International Holdings' shares has lifted the company's P/S handsomely. 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.
The fact that Miko International Holdings currently trades on a higher P/S relative to the industry is an oddity, since its recent three-year growth is lower than the wider industry forecast. When we see slower than industry revenue growth but an elevated P/S, there's considerable risk of the share price declining, sending the P/S lower. Unless the recent medium-term conditions improve markedly, it's very challenging to accept these the share price as being reasonable.
It's always necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Miko International Holdings, and understanding these should be part of your investment process.
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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在過去的一個月中,Miko International Holdings Limited(HKG:1247)股價表現非常出色,收穫了80%的驚人漲幅。最近30天使年度增長率非常高達62%。
由於市銷率(或“P/S”)爲1.7倍,幾乎有一半的香港奢侈品行業公司的市銷率低於0.7倍,所以在股價大幅反彈後,你可能會認爲Miko International Holdings的股票不值得研究。然而,高市銷率可能是有原因的,需要進一步調查以判斷是否合理。
SEHK:1247市銷率對比行業板塊 2024年6月5日
Miko International Holdings的表現如何
如果不算驚人的話,那麼Miko International Holdings最近的營業收入增長應該被認爲是令人滿意的。也許市場認爲最近的營收表現足夠強大,可以超越行業,這導致了高市銷率。否則,現有股東可能會對股價的可行性感到有些緊張。
儘管沒有Miko International Holdings的分析師預測可用,但可以查看這個免費的數據豐富的可視化,以了解公司在收益、收入和現金流方面的表現情況。
Miko International Holdings的營業收入增長情況如何?
爲了證明其市銷率是合理的,Miko International Holdings需要產生超過行業的驚人增長。
通過這些信息,我們發現Miko International Holdings以高於行業的市銷率交易令人擔憂。大多數投資者似乎忽略了相當有限的最近增長率,並希望公司的業務前景會好轉。如果市銷率降至與近期增長率更爲一致的水平,那麼現有股東很可能會面臨未來的失望。
重要提示
Miko International Holdings的股票價格大幅反彈,這使得該公司的市銷率大幅上升。我們認爲市銷率的作用不是作爲估值工具,而是用來衡量當前投資者的情緒和未來的預期。
Miko International Holdings目前的市銷率相對於行業來說較高是一個奇怪的現象,因爲它最近三年的增長率低於行業預測。當我們看到營業收入增長速度低於行業,但市銷率卻高得多時,股價下跌的風險非常大,從而降低了市銷率。除非最近的中期條件有顯着的改善,否則非常難接受這些股票價格的合理性。
考慮到投資風險的永恒威脅是必要的。我們已經確定了Miko International Holdings的2個警示信號,了解這些信號應該是你的投資過程的一部分。