To the annoyance of some shareholders, Zhejiang Akcome New Energy Technology Co.,Ltd. (SZSE:002610) shares are down a considerable 55% in the last month, which continues a horrid run for the company. For any long-term shareholders, the last month ends a year to forget by locking in a 85% share price decline.
After such a large drop in price, Zhejiang Akcome New Energy TechnologyLtd may be sending very bullish signals at the moment with its price-to-sales (or "P/S") ratio of 0.4x, since almost half of all companies in the Semiconductor industry in China have P/S ratios greater than 6x and even P/S higher than 11x are not unusual. 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.
What Does Zhejiang Akcome New Energy TechnologyLtd's Recent Performance Look Like?
For instance, Zhejiang Akcome New Energy TechnologyLtd's receding revenue in recent times would have to be some food for thought. 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. Those who are bullish on Zhejiang Akcome New Energy TechnologyLtd 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 Zhejiang Akcome New Energy TechnologyLtd will help you shine a light on its historical performance.
Do Revenue Forecasts Match The Low P/S Ratio?
There's an inherent assumption that a company should far underperform the industry for P/S ratios like Zhejiang Akcome New Energy TechnologyLtd's to be considered reasonable.
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 42%. However, a few very strong years before that means that it was still able to grow revenue by an impressive 46% in total over the last three years. Although it's been a bumpy ride, it's still fair to say the revenue growth recently has been more than adequate for the company.
Comparing the recent medium-term revenue trends against the industry's one-year growth forecast of 36% shows it's noticeably less attractive.
With this information, we can see why Zhejiang Akcome New Energy TechnologyLtd is trading at a P/S lower than the industry. It seems most investors are expecting to see the recent limited growth rates continue into the future and are only willing to pay a reduced amount for the stock.
What Does Zhejiang Akcome New Energy TechnologyLtd's P/S Mean For Investors?
Zhejiang Akcome New Energy TechnologyLtd's P/S looks about as weak as its stock price lately. Generally, our preference is to limit the use of the price-to-sales ratio to establishing what the market thinks about the overall health of a company.
As we suspected, our examination of Zhejiang Akcome New Energy TechnologyLtd revealed its three-year revenue trends are contributing to its low P/S, given they look worse than current industry expectations. At this stage investors feel the potential for an improvement in revenue isn't great enough to justify a higher P/S ratio. Unless the recent medium-term conditions improve, they will continue to form a barrier for the share price around these levels.
And what about other risks? Every company has them, and we've spotted 1 warning sign for Zhejiang Akcome New Energy TechnologyLtd you should know about.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
一部の株主の不快感により、Zhejiang Akcome New Energy Technology Co.、Ltd.(SZSE:002610)の株価は過去1か月間に55%の相当な下落を記録しており、これは同社にとって恐ろしい期間を続けています。長期的な株主にとって、過去1か月間で85%の株価下落を記録し、忘れられない1年を締めくくります。
このような大幅な株価下落の後、Zhejiang Akcome New Energy TechnologyLtdは、価格対売上高比率(または「P / S」)が0.4xであるため、中国の半導体業界全体の半数以上の企業がP / S比率が6x以上であり、P / S比率が11x以上であることは珍しくないという非常に強気なシグナルを出しているかもしれない。ただし、P / Sを単純に顔に取ることは賢明ではなく、それが非常に制限されている理由があるかもしれない。
Zhejiang Akcome New Energy TechnologyLtdの最近のパフォーマンスはどのようなものですか?
たとえば、Zhejiang Akcome New Energy TechnologyLtdの売上高の減少は最近のところ考える余地があるでしょう。1つの可能性は、投資家が、将来近い将来に一般業界に比べてアンダーパフォームになることを避けるために十分なことを会社がしないと思うため、P / Sが低いと考えている可能性があります。Zhejiang Akcome New Energy TechnologyLtdに強気な人々は、株式を低い評価で買い戻せることを願っているでしょう。
企業の収益、売上高、キャッシュフローの全容を知りたいですか? それなら、Zhejiang Akcome New Energy TechnologyLtdの無料レポートをご覧ください。このレポートで、同社の歴史的なパフォーマンスに光を当てます。
売上高予測は低いP/S比率と一致するか?
Zhejiang Akcome New Energy TechnologyLtdのP / S比率が合理的であると考えるには、P / S比率が過剰に高くなるほど、会社が業界にとってそこまでアンダーパフォームする必要があるという前提がある。
この情報から、Zhejiang Akcome New Energy TechnologyLtdが業界の中でP / Sが低い理由がわかります。ほとんどの投資家は、限られた成長率が将来にわたって続くことを期待しており、株価が低くなるとしか払いたくないと考えているようです。
Zhejiang Akcome New Energy TechnologyLtdのP / Sが投資家にとってどのような意味を持つのでしょうか?
Zhejiang Akcome New Energy TechnologyLtdのP / Sは最近の株価と同様に弱いようです。基本的に、当社の優先順位は、P / S比率の使用を限定して、企業の全体的な健康状態について市場がどのように考えているかを確立することです。
予想どおり、Zhejiang Akcome New Energy TechnologyLtdの調査は、3年間の売上トレンドが低いP / Sに貢献していることがわかりました。中期的な条件が改善する可能性が十分にあると投資家が感じるまでは、改善の潜在性が高くないため、彼らは株式の高いP / S比率を正当化するために十分な理由があるとは考えていません。最近の中期的な条件が改善しない限り、株価がこのレベル付近で転換点を形成し続けることになります。
他に何かリスクがあるのでしょうか?すべての会社はそれらを持っており、私たちはZhejiang Akcome New Energy TechnologyLtdの1つの警告サインを見つけました。
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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。