Tian Jin Bohai Chemical Co.,Ltd. (SHSE:600800) shareholders that were waiting for something to happen have been dealt a blow with a 26% share price drop in the last month. Instead of being rewarded, shareholders who have already held through the last twelve months are now sitting on a 44% share price drop.
Since its price has dipped substantially, Tian Jin Bohai ChemicalLtd may look like a strong buying opportunity at present with its price-to-sales (or "P/S") ratio of 0.6x, considering almost half of all companies in the Electronic industry in China have P/S ratios greater than 3.6x and even P/S higher than 7x aren't out of the ordinary. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's so limited.
How Tian Jin Bohai ChemicalLtd Has Been Performing
For example, consider that Tian Jin Bohai ChemicalLtd's financial performance has been poor lately as its revenue has been in decline. One possibility is that the P/S is low because investors think the company won't do enough to avoid underperforming the broader industry in the near future. If you like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's out of favour.
Want the full picture on earnings, revenue and cash flow for the company? Then our free report on Tian Jin Bohai ChemicalLtd will help you shine a light on its historical performance.
How Is Tian Jin Bohai ChemicalLtd's Revenue Growth Trending?
Tian Jin Bohai ChemicalLtd's 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.
Taking a look back first, the company's revenue growth last year wasn't something to get excited about as it posted a disappointing decline of 30%. Regardless, revenue has managed to lift by a handy 10% in aggregate from three years ago, thanks to the earlier period of growth. Although it's been a bumpy ride, it's still fair to say the revenue growth recently has been mostly respectable for the company.
Comparing that to the industry, which is predicted to deliver 26% growth in the next 12 months, the company's momentum is weaker, based on recent medium-term annualised revenue results.
With this in consideration, it's easy to understand why Tian Jin Bohai ChemicalLtd's P/S falls short of the mark set by its industry peers. Apparently many shareholders weren't comfortable holding on to something they believe will continue to trail the wider industry.
What Does Tian Jin Bohai ChemicalLtd's P/S Mean For Investors?
Tian Jin Bohai ChemicalLtd's P/S looks about as weak as its stock price lately. We'd say the price-to-sales ratio's power isn't primarily as a valuation instrument but rather to gauge current investor sentiment and future expectations.
As we suspected, our examination of Tian Jin Bohai ChemicalLtd revealed its three-year revenue trends are contributing to its low P/S, given they look worse than current industry expectations. 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 1 warning sign for Tian Jin Bohai ChemicalLtd that you should be aware of.
Of course, profitable companies with a history of great earnings growth are generally safer bets. So you may wish to see this free collection of other companies that have reasonable P/E ratios and have grown earnings strongly.
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.
tian jin bohai chemicalの株主たちは何かが起こるのを待っていたが、先月26%の株価下落を受けたため、打撃を受けている。すでに過去12か月間保有してきた株主たちは、44%の株価下落に直面している。
価格が大幅に下落したため、tian jin bohai chemical ltdは、現在、価格/ 売上比(または「P / S」)が0.6倍と、中国の電子業界のほぼ半数がP / S比率が3.6倍以上であり、7倍以上のP / Sでない限り普通ではないと考えると、強力な買い機会に見えるかもしれない。ただし、P / S比率を表面上だけ見るのは賢明ではなく、それがなぜ制限されているのかについての説明がある場合もある。
tian jin bohai chemical ltdの業績はどうであったか
例えば、tian jin bohai chemical ltdの財務業績は最近低迷しており、売上高が減少傾向にあるため、P / S比率が低い可能性がある。投資家たちは、近い将来により広範な業界の成績を下回ることがないようにするために十分な取り組みを行わないと考えたため、株主を報いるのではなく、株価は低迷している。もし同社が気になるなら、流行から外れている間に株式を購入することができるかもしれない。
同社の収益、売上高、キャッシュフローの完全な情報を知りたい場合は、tian jin bohai chemical ltdの無料レポートを利用して過去の業績を明らかにすることができます。
tian jin bohai chemical ltdの売上高成長はどのように推移しているか?
tian jin bohai chemical ltdのP / S比率は、非常に低い成長率または売上高が減少すると予想される企業に典型的であり、業界よりもはるかに悪い成績を収める可能性がある。
このことを考慮すると、tian jin bohai chemical ltdのP / S比率が業界の基準を下回っているのは理解できます。多くの株主は、より広い業界に取り残され続けると信じているものを保持することに不安を感じていたようです。
tian jin bohai chemical ltdのP / S比率が投資家にとって意味することは何ですか?
tian jin bohai chemical ltdのP / S比率は、最近の株価に勝るとも劣らない。価格/売上比率の力は、主に現在の投資家の感情や将来の期待を予測するためであると言える。
予想通り、tian jin bohai chemical ltdの調査結果から、3年間の売上高トレンドは現在の業界の期待を下回っており、これらの期待よりも悪いため、低いP / S比率に貢献しています。現在、株主たちは低いP / S比率を受け入れているため、将来の売上高が良くなることはなく、このレベルで株価を形成し続けることになります。
意見を定める前に、tian jin bohai chemical ltdの1つの警告ポイントがあることを発見しましたので、覚えておくことが大切です。
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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。