Vincent Medical Holdings Limited (HKG:1612) shares have had a really impressive month, gaining 27% after a shaky period beforehand. Notwithstanding the latest gain, the annual share price return of 5.6% isn't as impressive.
Although its price has surged higher, Vincent Medical Holdings' price-to-sales (or "P/S") ratio of 0.4x might still make it look like a strong buy right now compared to the wider Medical Equipment industry in Hong Kong, where around half of the companies have P/S ratios above 2.9x and even P/S above 7x are quite common. However, the P/S might be quite low for a reason and it requires further investigation to determine if it's justified.
SEHK:1612 Price to Sales Ratio vs Industry May 21st 2024
How Has Vincent Medical Holdings Performed Recently?
Recent times haven't been great for Vincent Medical Holdings as its revenue has been rising slower than most other companies. Perhaps the market is expecting the current trend of poor revenue growth to continue, which has kept the P/S suppressed. If you still like the company, you'd be hoping revenue doesn't get any worse and that you could pick up some stock while it's out of favour.
Want the full picture on analyst estimates for the company? Then our free report on Vincent Medical Holdings will help you uncover what's on the horizon.
What Are Revenue Growth Metrics Telling Us About The Low P/S?
Vincent Medical Holdings' P/S ratio would be typical for a company that's expected to deliver very poor growth or even falling revenue, and importantly, perform much worse than the industry.
Retrospectively, the last year delivered a decent 14% gain to the company's revenues. However, this wasn't enough as the latest three year period has seen an unpleasant 38% overall drop in revenue. Therefore, it's fair to say the revenue growth recently has been undesirable for the company.
Looking ahead now, revenue is anticipated to climb by 18% per year during the coming three years according to the lone analyst following the company. With the industry predicted to deliver 49% growth per annum, the company is positioned for a weaker revenue result.
With this information, we can see why Vincent Medical Holdings is trading at a P/S lower than the industry. Apparently many shareholders weren't comfortable holding on while the company is potentially eyeing a less prosperous future.
What We Can Learn From Vincent Medical Holdings' P/S?
Vincent Medical Holdings' recent share price jump still sees fails to bring its P/S alongside the industry median. 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.
As we suspected, our examination of Vincent Medical Holdings' analyst forecasts revealed that its inferior revenue outlook is contributing to its low P/S. Right now shareholders are accepting the low P/S as they concede future revenue probably won't provide any pleasant surprises. The company will need a change of fortune to justify the P/S rising higher in the future.
Before you take the next step, you should know about the 2 warning signs for Vincent Medical 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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Vincent Medical Holdings Limited (HKG:1612) 株は、前の不安定な期間を経て、非常に印象的な月を過ごしており、27% 上昇しました。ただし、5.6% の年間株価収益率はあまり印象的ではありません。
Vincent Medical Holdings の売上高の伸びがほかの多くの企業よりも遅れているため、最近の時代は良くありませんでした。市場は現在の売上高の伸び悩みが続くと予想しているため、P/S 比率が抑制されています。会社が好きなら、収益がさらに悪化しないことを望み、不人気な時期に株を購入することを望むでしょう。
企業に関するアナリストの予測の完全な情報が欲しいですか?Vincent Medical Holdings の無料レポートで、将来のビジョンを明らかにすることができます。
売上高成長メトリクスは低いP / Sについて何を伝えていますか?
Vincent Medical Holdings の P/S 比率は、非常に低い成長または収益減少が予想されており、さらには業界平均以下のパフォーマンスが期待されている企業に典型的なものです。
これらの情報から、Vincent Medical Holdings が業界平均よりも低い P/S 比率で取引されている理由がわかります。会社が将来に向けてよくならない見通しをもっているため、多くの株主は株を保有することに心を痛めています。
Vincent Medical Holdings の P/S から何を学ぶことができるか?
Vincent Medical Holdings の最近の株価上昇は、まだ P/S が業界中央値に達していないことを示しています。投資判断を決定する際に、P/S 比率に過度に気を取られることは避けるべきですが、他の市場参加者が会社についてどのように考えているかについて多くの情報を明らかにすることができます。
Vincent Medical Holdings のアナリスト予測の調査から、低い P/S に寄与しているのは収益の見通しの劣悪さであることが予想されました。現在、将来の収益が良くなる可能性がないと株主は認めており、そのため低い P/S を受け入れていると言えます。将来、P/S が上昇する理由を正当化するには、会社に幸運な変化が必要になります。
次のステップを踏む前に、Vincent Medical Holdings の 2 つの警告サインについて知っておく必要があります。
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。