The Ever Harvest Group Holdings Limited (HKG:1549) share price has softened a substantial 25% over the previous 30 days, handing back much of the gains the stock has made lately. Instead of being rewarded, shareholders who have already held through the last twelve months are now sitting on a 46% share price drop.
Even after such a large drop in price, given about half the companies operating in Hong Kong's Shipping industry have price-to-sales ratios (or "P/S") above 1x, you may still consider Ever Harvest Group Holdings as an attractive investment with its 0.3x P/S ratio. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's limited.
What Does Ever Harvest Group Holdings' P/S Mean For Shareholders?
For instance, Ever Harvest Group Holdings' 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. Those who are bullish on Ever Harvest Group Holdings will be hoping that this isn't the case so that they can pick up the stock at a lower valuation.
Want the full picture on earnings, revenue and cash flow for the company? Then our free report on Ever Harvest Group Holdings will help you shine a light on its historical performance.
What Are Revenue Growth Metrics Telling Us About The Low P/S?
In order to justify its P/S ratio, Ever Harvest Group Holdings would need to produce sluggish growth that's trailing the industry.
Retrospectively, the last year delivered a frustrating 40% decrease to the company's top line. This has soured the latest three-year period, which nevertheless managed to deliver a decent 7.2% overall rise in revenue. Although it's been a bumpy ride, it's still fair to say the revenue growth recently has been mostly respectable for the company.
This is in contrast to the rest of the industry, which is expected to grow by 14% over the next year, materially higher than the company's recent medium-term annualised growth rates.
With this information, we can see why Ever Harvest Group Holdings is trading at a P/S lower than the industry. Apparently many shareholders weren't comfortable holding on to something they believe will continue to trail the wider industry.
What Does Ever Harvest Group Holdings' P/S Mean For Investors?
The southerly movements of Ever Harvest Group Holdings' shares means its P/S is now sitting at a pretty low level. It's argued the price-to-sales ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator.
As we suspected, our examination of Ever Harvest Group Holdings revealed its three-year revenue trends are contributing to its low P/S, given they look worse than current industry expectations. At this stage investors feel the potential for an improvement in revenue isn't great enough to justify a higher P/S ratio. If recent medium-term revenue trends continue, it's hard to see the share price experience a reversal of fortunes anytime soon.
There are also other vital risk factors to consider before investing and we've discovered 4 warning signs for Ever Harvest Group Holdings 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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在過去的30天內,Ever Harvest Group Holdings Limited (HKG:1549)的股價已經下跌了25%,讓股票最近獲得的大部分收益流失了。在過去的12個月中已經持有股票的股東不僅沒有得到回報,現在還面臨着46%的股價下跌。
即使在股價大幅下跌後,約有一半經營在香港航運行業的公司的市銷率(或“P/S”)超過1倍,您可能仍然認爲Ever Harvest Group Holdings 的0.3倍市銷率使其成爲一個有吸引力的投資。儘管如此,僅僅看市銷率並不明智,因爲市銷率受限的原因可能有解釋。
Ever Harvest Group Holdings的市銷率對股東意味着什麼?
例如,Ever Harvest Group Holdings最近的營業收入下降應該引起人們的思考。可能很多人預計令人失望的營收表現將繼續下滑,這就壓制了市銷率。看好Ever Harvest Group Holdings的人會希望情況並非如此,以便他們可以以更低的估值購買該股票。
想要了解該公司的收益,營業收入和現金流的全部內容嗎?那麼我們免費提供的Ever Harvest Group Holdings報告將幫助您了解其歷史表現。
營收增長指標告訴我們什麼關於低市銷率?
爲了證明其市銷率,Ever Harvest Group Holdings需要產生低於行業的緩慢增長。