Dingdang Health Technology Group Ltd. (HKG:9886) shareholders would be excited to see that the share price has had a great month, posting a 78% gain and recovering from prior weakness. Unfortunately, the gains of the last month did little to right the losses of the last year with the stock still down 25% over that time.
Although its price has surged higher, there still wouldn't be many who think Dingdang Health Technology Group's price-to-sales (or "P/S") ratio of 0.5x is worth a mention when the median P/S in Hong Kong's Consumer Retailing industry is similar at about 0.7x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.
SEHK:9886 Price to Sales Ratio vs Industry May 21st 2024
What Does Dingdang Health Technology Group's P/S Mean For Shareholders?
With revenue growth that's inferior to most other companies of late, Dingdang Health Technology Group has been relatively sluggish. Perhaps the market is expecting future revenue performance to lift, which has kept the P/S from declining. However, if this isn't the case, investors might get caught out paying too much for the stock.
Keen to find out how analysts think Dingdang Health Technology Group's future stacks up against the industry? In that case, our free report is a great place to start.
Is There Some Revenue Growth Forecasted For Dingdang Health Technology Group?
There's an inherent assumption that a company should be matching the industry for P/S ratios like Dingdang Health Technology Group's to be considered reasonable.
Retrospectively, the last year delivered a decent 12% gain to the company's revenues. This was backed up an excellent period prior to see revenue up by 118% in total over the last three years. So we can start by confirming that the company has done a great job of growing revenues over that time.
Shifting to the future, estimates from the one analyst covering the company suggest revenue should grow by 12% over the next year. With the industry predicted to deliver 13% growth , the company is positioned for a comparable revenue result.
With this in mind, it makes sense that Dingdang Health Technology Group's P/S is closely matching its industry peers. Apparently shareholders are comfortable to simply hold on while the company is keeping a low profile.
The Bottom Line On Dingdang Health Technology Group's P/S
Its shares have lifted substantially and now Dingdang Health Technology Group's P/S is back within range of the industry median. 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.
We've seen that Dingdang Health Technology Group maintains an adequate P/S seeing as its revenue growth figures match the rest of the industry. At this stage investors feel the potential for an improvement or deterioration in revenue isn't great enough to push P/S in a higher or lower direction. All things considered, if the P/S and revenue estimates contain no major shocks, then it's hard to see the share price moving strongly in either direction in the near future.
Plus, you should also learn about these 2 warning signs we've spotted with Dingdang Health Technology Group (including 1 which is a bit concerning).
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.
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.
Dingdang Health Technology Group Ltd.(HKG:9886)の株主は、株価が素晴らしい月を過ごし、前回の弱点から回復し78%の利益を上げたことに興奮することでしょう。残念ながら、先月の利益は、株価がその期間で25%下落したため、前年の損失を正さなかったことになります。
株価が上昇しても、Dingdang Health Technology Groupの価格売上高(または「P / S」)比率が0.5倍であり、香港の消費小売業界の中央値の約0.7倍にもかかわらず、それに言及する価値があると感じる人はあまりいないでしょう。しかしながら、合理的な根拠がない場合、投資家は明らかな機会または潜在的な障害を見落としているかもしれません。
SEHK:9886 2024年5月21日の株価売上高比率対業界
Dingdang Health Technology GroupのP / Sは株主にとってどのような意味があるのでしょうか?
最近の多くの他の企業に劣る売上成長を持ち、Dingdang Health Technology Groupは比較的停滞しています。たぶん、市場は売上高の将来的なパフォーマンスが向上することを期待しており、これによりP / Sが低下するのを防いでいるのでしょう。しかし、これがそうでない場合、投資家は株式にあまりにも多くの報酬を支払っていることに気付くかもしれません。
アナリストがDingdang Health Technology Groupの将来をどのように見ているかを知りたいと思っている場合は、無料レポートが役立ちます。
Dingdang Health Technology Groupにはいくつかの売上成長が予測されているのでしょうか?
Dingdang Health Technology GroupのようなP / S比率で業界に合わせる必要があるという内在的前提があります。
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。
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。