Those holding Golden Power Group Holdings Limited (HKG:3919) shares would be relieved that the share price has rebounded 27% in the last thirty days, but it needs to keep going to repair the recent damage it has caused to investor portfolios. Still, the 30-day jump doesn't change the fact that longer term shareholders have seen their stock decimated by the 61% share price drop in the last twelve months.
In spite of the firm bounce in price, you could still be forgiven for feeling indifferent about Golden Power Group Holdings' P/S ratio of 0.1x, since the median price-to-sales (or "P/S") ratio for the Electrical industry in Hong Kong is also close to 0.4x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.
See our latest analysis for Golden Power Group Holdings
SEHK:3919 Price to Sales Ratio vs Industry January 4th 2024
How Has Golden Power Group Holdings Performed Recently?
As an illustration, revenue has deteriorated at Golden Power Group 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 not, then existing shareholders may be a little nervous about the viability of the share price.
Want the full picture on earnings, revenue and cash flow for the company? Then our free report on Golden Power Group Holdings will help you shine a light on its historical performance.
What Are Revenue Growth Metrics Telling Us About The P/S?
The only time you'd be comfortable seeing a P/S like Golden Power Group Holdings' is when the company's growth is tracking the industry closely.
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 13%. As a result, revenue from three years ago have also fallen 5.3% overall. So unfortunately, we have to acknowledge that the company has not done a great job of growing revenue over that time.
Comparing that to the industry, which is predicted to deliver 25% growth in the next 12 months, the company's downward momentum based on recent medium-term revenue results is a sobering picture.
With this in mind, we find it worrying that Golden Power Group Holdings' P/S exceeds that of its industry peers. Apparently many investors in the company are way less bearish than recent times would indicate and aren't willing to let go of their stock right now. Only the boldest would assume these prices are sustainable as a continuation of recent revenue trends is likely to weigh on the share price eventually.
What Does Golden Power Group Holdings' P/S Mean For Investors?
Golden Power Group Holdings appears to be back in favour with a solid price jump bringing its P/S back in line with other companies in the industry 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.
The fact that Golden Power Group Holdings currently trades at a P/S on par with the rest of the industry is surprising to us since its recent revenues have been in decline over the medium-term, all while the industry is set to grow. Even though it matches the industry, we're uncomfortable with the current P/S ratio, as this dismal revenue performance is unlikely to support a more positive sentiment for long. Unless the recent medium-term conditions improve markedly, investors will have a hard time accepting the share price as fair value.
It is also worth noting that we have found 5 warning signs for Golden Power Group Holdings (4 are significant!) that you need to take into consideration.
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.
価格対売上高(「P / S」)比率が0.1xであるGolden Power Group HoldingsのP / S比率に無関心な気分になることができますが、香港の電気業界のメディアンP / S比率も0.4xに近いため、また、P / Sに合理的な根拠がない場合、投資家は明白な機会または潜在的な挫折を見落としているかもしれません。
Golden Power Group Holdingsの最新の分析をご覧ください。
SEHK:3919の株価対売上高比率と業界の比較 2024年1月4日
Golden Power Group Holdingsが最近どのようにパフォーマンスを発揮したか?
収益が過去1年間に減少したGolden Power Group Holdingsの収益は、全く理想的ではありません。P / Sが適度である可能性の1つは、投資家が1つの可能性として、企業が将来近い将来に業界全体と競合するために十分な仕事をすると思っているためです。そうでない場合、既存の株主は株価の持続可能性について少し神経質になる可能性があります。
企業の収益、売上高、キャッシュフローについての詳しい情報をお求めの場合は、弊社の無料レポートでGolden Power Group Holdingsの歴史的パフォーマンスについて詳細を知ることができます。
売上高の成長メトリックがP / Sについて何を物語っているのでしょうか?
業界に追随する成長が企業の成長に追随している場合に限り、Golden Power Group HoldingsのようなP / Sを許容できる唯一の場合です。
このことを考慮すると、Golden Power Group HoldingsのP / Sが業界の同僚を超えていることは心配です。明らかに、同社の多くの投資家は、近年の時期のように弱気ではなく、現在の株式を手放すことを望んでいません。最近の収益動向の継続は、株価に影響を及ぼす可能性がありますので、これらの価格が持続可能であると想定するのは、最も大胆な人々だけです。
Golden Power Group HoldingsのP / Sが投資家にとって意味するものは何ですか?
Golden Power Group Holdingsは、堅実な価格上昇によってP / Sを他の業界の企業と同等に戻しました。価格対売上高比率が株を買うかどうかの決定打となるわけではありませんが、それは収益予想の非常に有能なバロメーターです。
Golden Power Group Holdingsが現在業界と同じP / Sで取引しているという事実は、最近の収益が中期的に減少しているにもかかわらず、業界が成長する中、私たちにとって驚きです。同じ業界にマッチングしているにもかかわらず、私たちは現在のP / S比率に不快感を覚えています。この不慮の収益パフォーマンスは、長期的によりポジティブな感情をサポートすることができないため、投資家は株価を公正な価値として受け入れるのに苦労することになるでしょう。
また、Golden Power Group Holdingsには5つの警告サイン(4つが重要!)があることにも注意することが価値があります。
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。