Despite anticipated growth, Shenzhen Zhongjin Lingnan Nonfemet's lower than market P/E suggests shareholder skepticism. This could be due to unseen threats to earnings or expected earnings instability.
The decline in share price and EPS may not be as severe as feared. Long-term returns suggest the past year could be a temporary setback. However, 3 warning signs for the company should be noted by investors.
The mix of a low ROE and high debt is unattractive. Top-tier firms usually have high ROE and low debt. Among firms with equal ROE, the one with less debt is preferred.
The declining ROCE trend at Shenzhen Zhongjin Lingnan Nonfemet signals noteworthy concern. Despite their reinvestment for long term growth, the profitability of these investments is doubtful due to the low return and steady sales. The modest stock gain in recent years implies caution from investors.
Shenzhen Zhongjin Lingnan Nonfemet Stock Forum
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