To the annoyance of some shareholders, Grown Up Group Investment Holdings Limited (HKG:1842) shares are down a considerable 27% in the last month, which continues a horrid run for the company. The recent drop completes a disastrous twelve months for shareholders, who are sitting on a 57% loss during that time.
In spite of the heavy fall in price, you could still be forgiven for feeling indifferent about Grown Up Group Investment Holdings' P/S ratio of 0.2x, since the median price-to-sales (or "P/S") ratio for the Luxury industry in Hong Kong is also close to 0.7x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.
How Has Grown Up Group Investment Holdings Performed Recently?
As an illustration, revenue has deteriorated at Grown Up Group Investment Holdings over the last year, which is not ideal at all. One possibility is that the P/S is moderate because investors think the company might still do enough to be in line with the broader industry in the near future. If you like the company, you'd at least be hoping this is the case so that you could potentially pick up some stock while it's not quite in favour.
Want the full picture on earnings, revenue and cash flow for the company? Then our free report on Grown Up Group Investment Holdings will help you shine a light on its historical performance.
How Is Grown Up Group Investment Holdings' Revenue Growth Trending?
Grown Up Group Investment Holdings' P/S ratio would be typical for a company that's only expected to deliver moderate growth, and importantly, perform in line with the industry.
In reviewing the last year of financials, we were disheartened to see the company's revenues fell to the tune of 26%. Regardless, revenue has managed to lift by a handy 5.4% in aggregate from three years ago, thanks to the earlier period of growth. 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 12% over the next year, materially higher than the company's recent medium-term annualised growth rates.
In light of this, it's curious that Grown Up Group Investment Holdings' P/S sits in line with the majority of other companies. Apparently many investors in the company are less bearish than recent times would indicate and aren't willing to let go of their stock right now. They may be setting themselves up for future disappointment if the P/S falls to levels more in line with recent growth rates.
What We Can Learn From Grown Up Group Investment Holdings' P/S?
With its share price dropping off a cliff, the P/S for Grown Up Group Investment Holdings looks to be in line with the rest of the Luxury industry. Using the price-to-sales ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects.
Our examination of Grown Up Group Investment Holdings revealed its poor three-year revenue trends aren't resulting in a lower P/S as per our expectations, given they look worse than current industry outlook. When we see weak revenue with slower than industry growth, we suspect the share price is at risk of declining, bringing the P/S back in line with expectations. Unless there is a significant improvement in the company's medium-term performance, it will be difficult to prevent the P/S ratio from declining to a more reasonable level.
Plus, you should also learn about these 3 warning signs we've spotted with Grown Up Group Investment Holdings (including 2 which are a bit concerning).
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).
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
株主の中には不快に感じる人もいるかもしれませんが、Grown Up Group Investment Holdings Limited(HKG:1842)の株価はこの1か月間でかなり下落し、同社にとってひどいランが続いています。最近の下落は、株主にとって惨憺たる12か月間を完了します。その間、株主たちは57%の損失を被っています。
価格対売上高(P/S)比率が0.2xであるGrown Up Group Investment Holdingsのことを考えると、価格対売上高比率(または「P / S」比率)は、香港のラグジュアリー業界のメディアンにも0.7xに近いため、価格下落にもかかわらず無関心に感じることができます。ただし、P/Sの合理的な根拠がない場合、投資家は明確な機会または潜在的な損失を見落としているかもしれません。
Grown Up Group Investment Holdingsは最近どういうパフォーマンスを発揮しているのですか?
たとえば、売上高が過去1年間で悪化しているGrown Up Group Investment Holdingsでは、それは全く理想的ではありません。1つの可能性は、P/Sが適度であるため、投資家が将来近い将来に業界全体に合わせるために十分なことをまだ思っているということです。会社が好きなら、少なくとも、あなたが株を持つことができるようになる前に、それが完全に人気を博さなくなる期間にその株を購入することを望むでしょう。
会社の収益、売上高、キャッシュフローについての詳しい情報をお望みですか?Grown Up Group Investment Holdingsについての無料レポートは、その歴史的なパフォーマンスについて光を当てるのに役立ちます。
Grown Up Group Investment Holdingsの売上高成長はどのように推移していますか?
Grown Up Group Investment HoldingsのP / S比率は、中程度の成長が期待されており、重要なことに、業界に沿って実施されることが予想される会社に典型的です。
このため、Grown Up Group Investment HoldingsのP/Sが他の多くの企業と同じようになっていることについては興味深いことです。どうやら、同社の多くの投資家は、最近の時代ほど弱気ではなく、現在は株を手放すことができないと考えていないようです。P/Sが最近の成長率により一致するようにならない場合、彼らは将来的な失望を引き起こす可能性があります。
Grown Up Group Investment HoldingsのP/Sから学ぶことは何ですか?
株価が急落したのを考えると、Grown Up Group Investment HoldingsのP/Sはラグジュアリー業界全体とほぼ同じに見えます。株を売却するかどうかを判断するために価格対売上高比率だけを使用するのは合理的ではありませんが、それは会社の将来の見通しの実践的なガイドになることがあります。
Grown Up Group Investment Holdingsの調査によれば、3年間の売上高の低迷トレンドが現在の業界見通しよりも悪化しているため、将来のP / Sの減少が期待されるようになっていますが、期待に沿って低くなるのではないかと思います。業界の成長よりも遅れた収益が低迷している場合、株価が下落するリスクがあるため、そのP / Sが期待通りに戻る可能性があります。中期的なパフォーマンスの大幅な改善がない限り、P / S比率をより合理的なレベルに低下させることは困難です。
さらに、Grown Up Group Investment Holdingsの3つの警告サイン(心配なものを含む2つ)について学ぶ必要があります。
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。