Hidili Industry International Development Limited (HKG:1393) shares have had a really impressive month, gaining 26% after a shaky period beforehand. Still, the 30-day jump doesn't change the fact that longer term shareholders have seen their stock decimated by the 69% share price drop in the last twelve months.
Although its price has surged higher, given about half the companies operating in Hong Kong's Oil and Gas industry have price-to-sales ratios (or "P/S") above 0.8x, you may still consider Hidili Industry International Development as an attractive investment with its 0.2x P/S ratio. However, the P/S might be low for a reason and it requires further investigation to determine if it's justified.
How Hidili Industry International Development Has Been Performing
For instance, Hidili Industry International Development's receding revenue in recent times would have to be some food for thought. One possibility is that the P/S is low because investors think the company won't do enough to avoid underperforming the broader industry in the near future. However, if this doesn't eventuate then existing shareholders may be feeling optimistic about the future direction of the share price.
Want the full picture on earnings, revenue and cash flow for the company? Then our free report on Hidili Industry International Development will help you shine a light on its historical performance.
Is There Any Revenue Growth Forecasted For Hidili Industry International Development?
There's an inherent assumption that a company should underperform the industry for P/S ratios like Hidili Industry International Development's to be considered reasonable.
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 43%. However, a few very strong years before that means that it was still able to grow revenue by an impressive 82% 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.
Comparing that to the industry, which is only predicted to deliver 1.7% growth in the next 12 months, the company's momentum is stronger based on recent medium-term annualised revenue results.
With this in mind, we find it intriguing that Hidili Industry International Development's P/S isn't as high compared to that of its industry peers. It looks like most investors are not convinced the company can maintain its recent growth rates.
What Does Hidili Industry International Development's P/S Mean For Investors?
Despite Hidili Industry International Development's share price climbing recently, its P/S still lags most other companies. 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're very surprised to see Hidili Industry International Development currently trading on a much lower than expected P/S since its recent three-year growth is higher than the wider industry forecast. When we see strong revenue with faster-than-industry growth, we assume there are some significant underlying risks to the company's ability to make money which is applying downwards pressure on the P/S ratio. It appears many are indeed anticipating revenue instability, because the persistence of these recent medium-term conditions would normally provide a boost to the share price.
You should always think about risks. Case in point, we've spotted 1 warning sign for Hidili Industry International Development you should be aware of.
If these risks are making you reconsider your opinion on Hidili Industry International Development, explore our interactive list of high quality stocks to get an idea of what else is out there.
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例如,Hidili Industry Industry Industry International Development最近收入的下降值得深思。一种可能性是市销率很低,因为投资者认为公司在不久的将来在避免整个行业表现不佳方面做得还不够。但是,如果最终没有发生这种情况,那么现有股东可能会对股价的未来走向感到乐观。
考虑到这一点,我们发现有趣的是,Hidili Industry Industry Industry International Development的市销率与业内同行相比没有那么高。看来大多数投资者不相信该公司能够维持其最近的增长率。
恒地工业国际发展的市销率对投资者意味着什么?
尽管Hidili Industry Industry International Development最近股价上涨,但其市销率仍然落后于大多数其他公司。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。
我们非常惊讶地看到,Hidili Industry Industry Industry Industrial Development目前的市销率远低于预期,因为其最近三年的增长高于整个行业的预测。当我们看到强劲的收入和快于行业的增长速度时,我们假设公司的盈利能力存在一些重大的潜在风险,这给市销率带来了下行压力。看来许多人确实在预测收入不稳定,因为近期这些中期状况的持续下去通常会提振股价。
你应该时刻考虑风险。举个例子,我们发现了你应该注意的Hidili Industry Industry 国际发展的一个警告信号。