SDM Education Group Holdings Limited (HKG:8363) shares have continued their recent momentum with a 29% gain in the last month alone. Longer-term shareholders would be thankful for the recovery in the share price since it's now virtually flat for the year after the recent bounce.
In spite of the firm bounce in price, it would still be understandable if you think SDM Education Group Holdings is a stock with good investment prospects with a price-to-sales ratios (or "P/S") of 0.4x, considering almost half the companies in Hong Kong's Consumer Services industry have P/S ratios above 1.4x. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the reduced P/S.
SEHK:8363 Price to Sales Ratio vs Industry March 4th 2024
How Has SDM Education Group Holdings Performed Recently?
For instance, SDM Education Group Holdings' receding revenue in recent times would have to be some food for thought. It might be that many expect the disappointing revenue performance to continue or accelerate, which has repressed the P/S. However, if this doesn't eventuate then existing shareholders may be feeling optimistic about the future direction of the share price.
Although there are no analyst estimates available for SDM Education Group Holdings, take a look at this free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.
Do Revenue Forecasts Match The Low P/S Ratio?
In order to justify its P/S ratio, SDM Education Group Holdings would need to produce sluggish growth that's trailing the industry.
In reviewing the last year of financials, we were disheartened to see the company's revenues fell to the tune of 6.7%. That put a dampener on the good run it was having over the longer-term as its three-year revenue growth is still a noteworthy 14% in total. So we can start by confirming that the company has generally done a good job of growing revenue over that time, even though it had some hiccups along the way.
This is in contrast to the rest of the industry, which is expected to grow by 19% over the next year, materially higher than the company's recent medium-term annualised growth rates.
In light of this, it's understandable that SDM Education Group Holdings' P/S sits below the majority of other companies. Apparently many shareholders weren't comfortable holding on to something they believe will continue to trail the wider industry.
The Key Takeaway
SDM Education Group Holdings' stock price has surged recently, but its but its P/S still remains modest. It's argued the price-to-sales ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator.
In line with expectations, SDM Education Group Holdings maintains its low P/S on the weakness of its recent three-year growth being lower than the wider industry forecast. Right now shareholders are accepting the low P/S as they concede future revenue probably won't provide any pleasant surprises. Unless the recent medium-term conditions improve, they will continue to form a barrier for the share price around these levels.
Before you settle on your opinion, we've discovered 4 warning signs for SDM Education Group Holdings (3 are significant!) that you should be aware of.
If you're unsure about the strength of SDM Education Group Holdings' business, why not explore our interactive list of stocks with solid business fundamentals for some other companies you may have missed.
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SDM Education Group Holdings Limited (HKG:8363)の株式は、ここ最近の勢いを維持し、先月だけで29%上昇しました。株価の回復については、長期的な株主は感謝しているでしょう。最近のバウンス後に、現在はほぼ1年間でほぼ変わらなくなっています。
株価がバウンスしたにもかかわらず、SDM Education Group Holdingsが良好な投資見通しを持つ株式と考えることは理解できます。1.4倍以上のP/S比率を持つ企業の半数以上が考慮されるため、0.4倍のP/S比率を考慮すると、香港の消費者サービス業界の企業のほとんどはP/S比率が高いと言えます。それにもかかわらず、減少したP/Sに合理的な基盤があるかどうかを掘り下げる必要があります。
これは、同社の最近の中期的な年平均成長率よりも19%成長すると予想されている業界とは対照的です。そのため、SDM Education Group HoldingsのP/Sが他の多くの企業より下回っているのは理解できます。明らかに多くの株主は、広い業界に同調しないと考えているものを保有することに不快感を覚えていました。
これらの理由により、SDM Education Group HoldingsのP/S比率は他の企業の多くを下回っているため、多くの株主が同意しています。将来の売上高には、決して好ましいサプライズがないということです。最近の中期的な環境が改善されない限り、このレベルの周囲で株価を阻止する壁を形成し続けることになるでしょう。
重要なポイント
SDM Education Group Holdingsの株価は最近急騰していますが、P/S比率はまだ控えめです。P/S比率は一部の業界では価値の劣る測定方法であると主張されていますが、ビジネスセンチメントの指標になり得る場合があります。
予想通り、SDM Education Group Holdingsは、最近の3年間における成長が業界予測よりも低かったため、P/Sが低いままです。現在、株主は将来の売上高が恒常的に低調であることを認め、低いP/Sを受け入れています。最近の中期的な状況が改善されない限り、このレベルの周囲で株価を阻止する壁を形成し続けることになるでしょう。
ご意見がありましたら、SDM Education Group Holdingsのこの記事についてフィードバックをお寄せください。こちらから直接ご連絡いただくか、editorial-team@simplywallst.comまでメールを送信してください。
SDM Education Group Holdingsのビジネスの強さに自信が持てない場合は、見逃してしまった他の企業の壮健なビジネス基盤を持つ株式のインタラクティブなリストを探索してみてください。
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オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。