KWG Living Group Holdings Limited (HKG:3913) shares have had a horrible month, losing 28% after a relatively good period beforehand. The recent drop completes a disastrous twelve months for shareholders, who are sitting on a 68% loss during that time.
Although its price has dipped substantially, there still wouldn't be many who think KWG Living Group Holdings' price-to-sales (or "P/S") ratio of 0.2x is worth a mention when the median P/S in Hong Kong's Real Estate industry is similar at about 0.6x. 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.
SEHK:3913 Price to Sales Ratio vs Industry March 28th 2024
How Has KWG Living Group Holdings Performed Recently?
While the industry has experienced revenue growth lately, KWG Living Group Holdings' revenue has gone into reverse gear, which is not great. Perhaps the market is expecting its poor revenue performance to improve, keeping the P/S from dropping. However, if this isn't the case, investors might get caught out paying too much for the stock.
Want the full picture on analyst estimates for the company? Then our free report on KWG Living Group Holdings will help you uncover what's on the horizon.
Is There Some Revenue Growth Forecasted For KWG Living Group Holdings?
In order to justify its P/S ratio, KWG Living Group Holdings would need to produce growth that's similar to the industry.
Retrospectively, the last year delivered a frustrating 4.4% decrease to the company's top line. However, a few very strong years before that means that it was still able to grow revenue by an impressive 154% in total over the last three years. Accordingly, while they would have preferred to keep the run going, shareholders would definitely welcome the medium-term rates of revenue growth.
Turning to the outlook, the next year should generate growth of 5.2% as estimated by the lone analyst watching the company. That's shaping up to be similar to the 5.9% growth forecast for the broader industry.
With this in mind, it makes sense that KWG Living Group Holdings' P/S is closely matching its industry peers. It seems most investors are expecting to see average future growth and are only willing to pay a moderate amount for the stock.
What Does KWG Living Group Holdings' P/S Mean For Investors?
Following KWG Living Group Holdings' share price tumble, its P/S is just clinging on to the industry median P/S. 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 seen that KWG Living Group Holdings maintains an adequate P/S seeing as its revenue growth figures match the rest of the industry. At this stage investors feel the potential for an improvement or deterioration in revenue isn't great enough to push P/S in a higher or lower direction. If all things remain constant, the possibility of a drastic share price movement remains fairly remote.
You need to take note of risks, for example - KWG Living Group Holdings has 2 warning signs (and 1 which can't be ignored) we think 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.
KWG Living Group Holdings Limited(HKG: 3913)的股价经历了一个糟糕的月份,在经历了相对不错的时期之后下跌了28%。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68%。
尽管其价格已大幅下跌,但当香港房地产行业的市盈率中位数约为0.6倍时,仍不会有多少人认为KWG Living Group Holdings的0.2倍市销率(或 “市盈率”)值得一提。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。
SEHK: 3913 2024 年 3 月 28 日与行业的股价销售比率
KWG Living Group Holdings最近表现如何?
尽管该行业最近经历了收入增长,但KWG Living Group Holdings的收入却倒退了,这并不理想。也许市场预计其糟糕的收入表现将有所改善,从而防止市销率下降。但是,如果不是这样,投资者可能会陷入为股票支付过多费用的困境。
想全面了解分析师对公司的估计吗?然后,我们关于KWG Living Group Holdings的免费报告将帮助您发现即将发生的事情。
预计KWG Living Group Holdings的收入会有所增长吗?
为了证明其市销率是合理的,KWG Living Group Holdings需要实现与该行业相似的增长。