Cherish Sunshine International Limited (HKG:1094) shareholders are no doubt pleased to see that the share price has bounced 47% in the last month, although it is still struggling to make up recently lost ground. Still, the 30-day jump doesn't change the fact that longer term shareholders have seen their stock decimated by the 65% share price drop in the last twelve months.
In spite of the firm bounce in price, Cherish Sunshine International may still be sending buy signals at present with its price-to-sales (or "P/S") ratio of 0.2x, considering almost half of all companies in the IT industry in Hong Kong have P/S ratios greater than 1x and even P/S higher than 3x aren't out of the ordinary. However, the P/S might be low for a reason and it requires further investigation to determine if it's justified.
SEHK:1094 Price to Sales Ratio vs Industry August 15th 2024
How Has Cherish Sunshine International Performed Recently?
With revenue growth that's exceedingly strong of late, Cherish Sunshine International has been doing very well. It might be that many expect the strong revenue performance to degrade substantially, which has repressed the P/S ratio. Those who are bullish on Cherish Sunshine International will be hoping that this isn't the case, so that they can pick up the stock at a lower valuation.
Want the full picture on earnings, revenue and cash flow for the company? Then our free report on Cherish Sunshine International will help you shine a light on its historical performance.
How Is Cherish Sunshine International's Revenue Growth Trending?
Cherish Sunshine International's P/S ratio would be typical for a company that's only expected to deliver limited growth, and importantly, perform worse than the industry.
If we review the last year of revenue growth, the company posted a terrific increase of 188%. The latest three year period has also seen an incredible overall rise in revenue, aided by its incredible short-term performance. Accordingly, shareholders would have been over the moon with those medium-term rates of revenue growth.
Comparing that recent medium-term revenue trajectory with the industry's one-year growth forecast of 13% shows it's noticeably more attractive.
With this in mind, we find it intriguing that Cherish Sunshine International's P/S isn't as high compared to that of its industry peers. Apparently some shareholders believe the recent performance has exceeded its limits and have been accepting significantly lower selling prices.
What Does Cherish Sunshine International's P/S Mean For Investors?
Despite Cherish Sunshine International's share price climbing recently, its P/S still lags most other companies. 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're very surprised to see Cherish Sunshine International currently trading on a much lower than expected P/S since its recent three-year growth is higher than the wider industry forecast. Potential investors that are sceptical over continued revenue performance may be preventing the P/S ratio from matching previous strong performance. 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 need to take note of risks, for example - Cherish Sunshine International has 4 warning signs (and 1 which is concerning) we think you should know about.
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).
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.
雖然仍在努力追趁最近失去的頹勢,但 Cherish Sunshine International Limited (HKG:1094) 的股價在過去一個月裏已經上漲了47%,這對股東來說無疑是個好消息。但從較長期股東的角度來看,股價在過去十二個月裏跌了65%,所以這30天的上漲並沒有改變更長期的事實。
儘管 Cherish Sunshine International 最近有股價反彈,但考慮到香港信息技術行業中近一半的公司 P/S 比率大於1倍,甚至 P/S 比率高於3倍也不足爲奇,因此 Cherish Sunshine International 目前的 0.2x 市銷率(「P/S」)比率仍然可以發出買入信號。但是, P/S 可能之所以較低,是有其原因的,需要進一步調查以確定是否合理。
SEHK:1094 市銷率與行業的比較 2024年8月15日
Cherish Sunshine International 近期的表現如何?
隨着收入強勁增長,Cherish Sunshine International 近期表現非常出色。可能有很多人預計其強勁的收入表現將大幅下滑,這已經壓制了 P/S 比率。看好 Cherish Sunshine International 的人們希望這不是事實,以便他們能以較低的估值買入股票。
您想了解公司的收益、收入和現金流的整體情況嗎?那麼 Cherish Sunshine International 的免費報告將幫助您了解其歷史表現。
Cherish Sunshine International 的營業收入增長如何?
Cherish Sunshine International 的 P/S 比率對於那些只預期提供有限增長,特別是預期表現不如行業的公司而言是典型的。
比較最近中期的收入增長軌跡及行業未來一年的增長預測,Cherish Sunshine International 顯然更具吸引力。
考慮到這一點,我們發現 Cherish Sunshine International 的 P/S 比率相對於其他同行並不高。顯然,一些股東認爲最近的表現已經超出了其極限,並已接受了明顯較低的出售價格。
Cherish Sunshine International 的 P/S 比率對於投資者意味着什麼?
儘管 Cherish Sunshine International 的股價最近有所上漲,但其 P / S 比率仍落後於大多數其他公司。通常情況下,我們不建議在決策投資時過分關注價格銷售比率,但它確實可以揭示其他市場參與者對該公司的看法。
我們非常驚訝地看到 Cherish Sunshine International 當前的 P / S 遠低於預期,因爲其最近三年的增長高於更廣泛的行業預測。對於質疑持續營收表現的潛在投資者可能會阻止 P / S 比率與之前的強勁表現相匹配。許多人似乎確實預計收入不穩定,因爲最近的中期情況的持久性通常會提高股價。
您需要注意風險,例如 - Cherish Sunshine International 具有4個警告標誌(其中1個令人擔憂),我們認爲您應該知道。