YLZ Information Technology Co.,Ltd (SZSE:300096) shareholders are no doubt pleased to see that the share price has bounced 27% in the last month, although it is still struggling to make up recently lost ground. Not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 38% in the last twelve months.
In spite of the firm bounce in price, YLZ Information TechnologyLtd's price-to-sales (or "P/S") ratio of 2.5x might still make it look like a strong buy right now compared to the wider Software industry in China, where around half of the companies have P/S ratios above 5.2x and even P/S above 9x are quite common. However, the P/S might be quite low for a reason and it requires further investigation to determine if it's justified.
How Has YLZ Information TechnologyLtd Performed Recently?
For instance, YLZ Information TechnologyLtd's receding revenue in recent times would have to be some food for thought. It might be that many expect the disappointing revenue performance to continue or accelerate, which has repressed the P/S. 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 YLZ Information TechnologyLtd will help you shine a light on its historical performance.
How Is YLZ Information TechnologyLtd's Revenue Growth Trending?
The only time you'd be truly comfortable seeing a P/S as depressed as YLZ Information TechnologyLtd's is when the company's growth is on track to lag the industry decidedly.
Retrospectively, the last year delivered a frustrating 2.3% decrease to the company's top line. The last three years don't look nice either as the company has shrunk revenue by 32% in aggregate. Accordingly, shareholders would have felt downbeat about the medium-term rates of revenue growth.
Comparing that to the industry, which is predicted to deliver 33% growth in the next 12 months, the company's downward momentum based on recent medium-term revenue results is a sobering picture.
In light of this, it's understandable that YLZ Information TechnologyLtd's P/S would sit below the majority of other companies. However, we think shrinking revenues are unlikely to lead to a stable P/S over the longer term, which could set up shareholders for future disappointment. There's potential for the P/S to fall to even lower levels if the company doesn't improve its top-line growth.
What Does YLZ Information TechnologyLtd's P/S Mean For Investors?
YLZ Information TechnologyLtd's recent share price jump still sees fails to bring its P/S alongside the industry median. 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.
As we suspected, our examination of YLZ Information TechnologyLtd revealed its shrinking revenue over the medium-term is contributing to its low P/S, given the industry is set to grow. Right now shareholders are accepting the low P/S as they concede future revenue probably won't provide any pleasant surprises either. Unless the recent medium-term conditions improve, they will continue to form a barrier for the share price around these levels.
There are also other vital risk factors to consider before investing and we've discovered 2 warning signs for YLZ Information TechnologyLtd that you should be aware of.
If companies with solid past earnings growth is up your alley, you may wish to see this free collection of other companies with strong earnings growth and low P/E ratios.
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尽管股价出现反弹,但YLZ Information TechnologyLtd的2.5倍市销率(或 “市销率”)与中国整个软件行业相比,目前仍可能看起来像是一个强劲的买盘。在中国,大约一半的公司的市销率高于5.2倍,甚至市盈率高于9倍也很常见。但是,市销率可能很低是有原因的,需要进一步调查以确定其是否合理。
YLZ信息技术有限公司最近的表现如何?
例如,YLZ Information TechnologyLtd最近收入的下降值得深思。许多人可能预计,令人失望的收入表现将持续或加速,这抑制了市销率。如果你喜欢这家公司,你会希望情况并非如此,这样你就有可能在股票失宠的时候买入一些股票。
想全面了解公司的收益、收入和现金流吗?那么我们关于YLZ Information TechnologyLtd的免费报告将帮助您了解其历史表现。
YLZ信息技术有限公司的收入增长趋势如何?
只有当公司的增长有望明显落后于该行业时,你才能真正放心地看到像YLZ Information TechnologyLtd一样低迷的市销率。
YLZ Information TechnologyLtd最近的股价上涨仍未能使其市销率与行业中位数并驾齐驱。仅使用市销率来确定是否应该出售股票是不明智的,但它可以作为公司未来前景的实用指南。
正如我们所怀疑的那样,我们对YLZ Information TechnologyLtd的审查显示,鉴于该行业即将增长,其中期收入萎缩是其市销售率低的原因。目前,股东们正在接受低市销率,因为他们承认未来的收入可能也不会带来任何惊喜。除非最近的中期状况有所改善,否则它们将继续构成股价在这些水平附近的障碍。
在投资之前,还有其他重要的风险因素需要考虑,我们已经发现了YLZ Information TechnologyLtd的两个警告信号,你应该注意这些信号。