Unfortunately for some shareholders, the Perfectech International Holdings Limited (HKG:765) share price has dived 26% in the last thirty days, prolonging recent pain. For any long-term shareholders, the last month ends a year to forget by locking in a 51% share price decline.
Although its price has dipped substantially, given close to half the companies operating in Hong Kong's Leisure industry have price-to-sales ratios (or "P/S") below 0.5x, you may still consider Perfectech International Holdings as a stock to potentially avoid with its 1.4x P/S ratio. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the elevated P/S.
SEHK:765 Price to Sales Ratio vs Industry June 7th 2024
How Perfectech International Holdings Has Been Performing
For example, consider that Perfectech International Holdings' financial performance has been poor lately as its revenue has been in decline. It might be that many expect the company to still outplay most other companies over the coming period, which has kept the P/S from collapsing. If not, then existing shareholders may be quite nervous about the viability of the share price.
Although there are no analyst estimates available for Perfectech International Holdings, take a look at this free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.
What Are Revenue Growth Metrics Telling Us About The High P/S?
In order to justify its P/S ratio, Perfectech International Holdings would need to produce impressive growth in excess of the industry.
In reviewing the last year of financials, we were disheartened to see the company's revenues fell to the tune of 12%. This means it has also seen a slide in revenue over the longer-term as revenue is down 3.8% in total over the last three years. Accordingly, shareholders would have felt downbeat about the medium-term rates of revenue growth.
Weighing that medium-term revenue trajectory against the broader industry's one-year forecast for expansion of 8.1% shows it's an unpleasant look.
With this in mind, we find it worrying that Perfectech International Holdings' P/S exceeds that of its industry peers. Apparently many investors in the company are way more bullish than recent times would indicate and aren't willing to let go of their stock at any price. Only the boldest would assume these prices are sustainable as a continuation of recent revenue trends is likely to weigh heavily on the share price eventually.
What Does Perfectech International Holdings' P/S Mean For Investors?
There's still some elevation in Perfectech International Holdings' P/S, even if the same can't be said for its share price recently. 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.
We've established that Perfectech International Holdings currently trades on a much higher than expected P/S since its recent revenues have been in decline over the medium-term. Right now we aren't comfortable with the high P/S as this revenue performance is highly unlikely to support such positive sentiment for long. Unless the the circumstances surrounding the recent medium-term improve, it wouldn't be wrong to expect a a difficult period ahead for the company's shareholders.
Before you take the next step, you should know about the 1 warning sign for Perfectech International Holdings that we have uncovered.
If strong companies turning a profit tickle your fancy, then you'll want to check out this free list of interesting companies that trade on a low P/E (but have proven they can grow earnings).
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遺憾的是,對於一些股東來說,Perfectech International Holdings Limited (HKG: 765) 的股價在過去30天內已經下跌了26%,延續了最近的痛苦。 對於任何長期股東而言,上個月以51%的股價下跌收官是一個令人忘懷的年份。
儘管Perfectech International Holdings的股價大幅下跌,但是由於香港休閒業中近一半的公司的市銷率(或“P/S”)低於0.5倍,因此您可能仍然認爲Perfectech International Holdings是一個應該避免的股票,其市銷率爲1.4倍。 不過,我們需要深入挖掘,以確定其高市銷率是否存在合理依據。
SEHK: 765銷售比率與行業對比,截至2024年6月7日
Perfectech International Holdings的業績表現
例如,Perfectech International Holdings的財務業績最近一直表現不佳,因爲其營業收入一直在下降。 可能許多人期望公司在未來一段時間內仍將超過大多數其他公司,這使市銷率沒有崩盤。 如果不是這樣,那麼現有股東可能會對股價的可行性感到非常緊張。
儘管沒有Perfectech International Holdings的分析師預測,但可以查看此免費數據豐富的可視化效果,了解公司在收益,營業收入和現金流方面的表現。