Those holding Haibo Heavy Engineering Science and Technology Co., Ltd. (SZSE:300517) shares would be relieved that the share price has rebounded 36% in the last thirty days, but it needs to keep going to repair the recent damage it has caused to investor portfolios. Not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 40% in the last twelve months.
After such a large jump in price, when almost half of the companies in China's Construction industry have price-to-sales ratios (or "P/S") below 1.1x, you may consider Haibo Heavy Engineering Science and Technology as a stock probably not worth researching with its 3x P/S ratio. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the elevated P/S.
What Does Haibo Heavy Engineering Science and Technology's Recent Performance Look Like?
As an illustration, revenue has deteriorated at Haibo Heavy Engineering Science and Technology over the last year, which is not ideal at all. One possibility is that the P/S is high because investors think the company will still do enough to outperform the broader industry in the near future. If not, then existing shareholders may be quite 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 Haibo Heavy Engineering Science and Technology will help you shine a light on its historical performance.
Do Revenue Forecasts Match The High P/S Ratio?
Haibo Heavy Engineering Science and Technology's P/S ratio would be typical for a company that's expected to deliver solid growth, and importantly, perform better than the industry.
In reviewing the last year of financials, we were disheartened to see the company's revenues fell to the tune of 19%. The last three years don't look nice either as the company has shrunk revenue by 21% in aggregate. 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 26% 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 alarming that Haibo Heavy Engineering Science and Technology's P/S sits above the majority of other companies. Apparently many investors in the company are way more bullish than recent times would indicate and aren't willing to let go of their stock at any price. Only the boldest would assume these prices are sustainable as a continuation of recent revenue trends is likely to weigh heavily on the share price eventually.
What We Can Learn From Haibo Heavy Engineering Science and Technology's P/S?
Haibo Heavy Engineering Science and Technology's P/S is on the rise since its shares have risen strongly. 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.
We've established that Haibo Heavy Engineering Science and Technology currently trades on a much higher than expected P/S since its recent revenues have been in decline over the medium-term. When we see revenue heading backwards and underperforming the industry forecasts, we feel the possibility of the share price declining is very real, bringing the P/S back into the realm of reasonability. Unless the the circumstances surrounding the recent medium-term improve, it wouldn't be wrong to expect a a difficult period ahead for the company's shareholders.
And what about other risks? Every company has them, and we've spotted 3 warning signs for Haibo Heavy Engineering Science and Technology you should know about.
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.
Haibo Heavy Engineering Science and Technology株(SZSE:300517)の株主は、過去30日間で株価が36%回復したことに安心できるかもしれませんが、投資家のポートフォリオに与えた最近の損失を修復するために引き続き上昇する必要があります。株価が過去12ヶ月間に非常に失望すべき40%下落しているため、全ての株主が喜んでいるわけではありません。
価格が大幅に上昇した後、中国の建設業界のほぼ半数の企業がPrice-to-sales Ratio(「P/S」とも呼ばれる)が1.1倍以下である中、P/S比率が3倍のHaibo Heavy Engineering Science and Technologyは、調査に値しない株式と考えられる場合があります。 それにもかかわらず、高いP/Sの合理的な根拠があるかどうかを見極めるために少し深堀りする必要があります。
Haibo Heavy Engineering Science and Technologyの最近のパフォーマンスはどうですか?
たとえば、過去1年間にHaibo Heavy Engineering Science and Technologyの収益は悪化しており、これは全く理想的ではありません。 一つの可能性は、P/Sが高い理由は、投資家が会社が近い将来に広範な業種をアウトパフォームすることを期待していると考えているためです。そうでない場合、既存の株主は株価の生存可能性にかなり神経質になるかもしれません。
この会社の収益、売上高、キャッシュフローの完全な状況を知りたい場合は、当社のHaibo Heavy Engineering Science and Technologyに関する無料レポートを利用して、そのヒストリカルデータについて明らかになります。
売上高の予測が高いP/S比率に一致するのでしょうか?
Haibo Heavy Engineering Science and TechnologyのP/S比率は、しっかりとした成長を提供し、さらに業界よりも優れたパフォーマンスを発揮することが期待される会社に典型的です。
このような状況で、Haibo Heavy Engineering Science and TechnologyのP/Sが他の多くの企業よりも高いことは懸念すべきことです。明らかに、会社の多くの投資家は、最近の時期を示すよりもかなり強気であり、株式をいかなる価格でも手放すつもりはないと思われます。最近の収益トレンドの継続としてこれらの価格が持続可能であると思うのは、最も大胆な者だけです。
Haibo重工業科技のP/Sから何を学べますか?
Haibo Heavy Engineering Science and TechnologyのP/S比率は、株価が急騰したため上昇傾向にあります。単独でprice-to-sales比率を使用して、株式を売却する必要があるかどうかを決定するのは賢明ではありませんが、会社の将来の見通しにおいて実用的なガイドとなることがあります。
Haibo Heavy Engineering Science and Technologyの収益が中期的に減少しているため、P/S比率がはるかに高いため、大幅な変動があったと判断できます。収益が業界予想に及ばず、逆行している場合、株価が下落する可能性が非常に高く、P/S比率が合理的な範囲に戻ることになります。最近の中期的な改善の周りに存在する状況が改善しない限り、同社の株主には困難な期間が訪れる可能性があります。
その他のリスクについてはどうですか?すべての企業にはリスクがありますが、弊社のウェブサイトでHaibo Heavy Engineering Science and Technologyの3つの警告サインを見つけることができます。
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。