To the annoyance of some shareholders, Worldgate Global Logistics Ltd (HKG:8292) shares are down a considerable 25% 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 89% loss during that time.
Although its price has dipped substantially, you could still be forgiven for feeling indifferent about Worldgate Global Logistics' P/S ratio of 0.2x, since the median price-to-sales (or "P/S") ratio for the Logistics industry in Hong Kong is about the same. While this might not raise any eyebrows, if the P/S ratio is not justified investors could be missing out on a potential opportunity or ignoring looming disappointment.
How Worldgate Global Logistics Has Been Performing
As an illustration, revenue has deteriorated at Worldgate Global Logistics 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.
We don't have analyst forecasts, but you can see how recent trends are setting up the company for the future by checking out our free report on Worldgate Global Logistics' earnings, revenue and cash flow.
Do Revenue Forecasts Match The P/S Ratio?
Worldgate Global Logistics' 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.
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 11%. Even so, admirably revenue has lifted 59% in aggregate from three years ago, notwithstanding the last 12 months. 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.
This is in contrast to the rest of the industry, which is expected to grow by 4.8% over the next year, materially lower than the company's recent medium-term annualised growth rates.
In light of this, it's curious that Worldgate Global Logistics' P/S sits in line with the majority of other companies. Apparently some shareholders believe the recent performance is at its limits and have been accepting lower selling prices.
What We Can Learn From Worldgate Global Logistics' P/S?
With its share price dropping off a cliff, the P/S for Worldgate Global Logistics looks to be in line with the rest of the Logistics 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.
To our surprise, Worldgate Global Logistics revealed its three-year revenue trends aren't contributing to its P/S as much as we would have predicted, given they look better than current industry expectations. It'd be fair to assume that potential risks the company faces could be the contributing factor to the lower than expected P/S. At least the risk of a price drop looks to be subdued if recent medium-term revenue trends continue, but investors seem to think future revenue could see some volatility.
You should always think about risks. Case in point, we've spotted 3 warning signs for Worldgate Global Logistics you should be aware of, and 2 of them are 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).
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令一些股东感到烦恼的是,Worldgate Global Logistics Ltd(HKG: 8292)的股价在上个月下跌了25%,这延续了该公司的糟糕表现。对于股东来说,最近的下跌结束了灾难性的十二个月,在此期间,股东亏损了89%。
尽管其价格已大幅下跌,但您对Worldgate Global Logistics的0.2倍市盈率漠不关心仍然是可以原谅的,因为香港物流业的中位市销率(或 “市销率”)大致相同。尽管这可能不会引起任何关注,但如果市销率不合理,投资者可能会错过潜在的机会或无视迫在眉睫的失望情绪。
有鉴于此,奇怪的是,Worldgate Global Logistics的市销率与其他多数公司持平。显然,一些股东认为最近的表现已达到极限,并一直在接受较低的销售价格。
我们可以从Worldgate Global Logistics的市销率中学到什么?
随着股价跌下悬崖,Worldgate Global Logistics的市销率似乎与其他物流行业持平。尽管市销率不应该成为决定你是否买入股票的决定性因素,但它是衡量收入预期的有力晴雨表。
令我们惊讶的是,Worldgate Global Logistics透露,其三年收入趋势对市销率的贡献没有我们预期的那么大,因为这些趋势看起来好于当前的行业预期。可以公平地假设,公司面临的潜在风险可能是市销率低于预期的促成因素。如果近期的中期收入趋势持续下去,至少价格下跌的风险似乎有所减弱,但投资者似乎认为未来的收入可能会出现一些波动。
你应该时刻考虑风险。举个例子,我们发现了你应该注意的Worldgate Global Logistics的3个警告信号,其中两个是令人担忧的。