Despite Shenyang Machine Tool's high P/S ratio and revenue drop, the market is optimistic about its future performance. However, if P/S ratio aligns with recent growth rates, shareholders may be disappointed. The slow revenue growth and high P/S ratio suggest a risk of share price decrease.
Shenyang Machine Tool's high P/S ratio indicates investor expectations of outperformance, but the risk of share price decline looms if the ratio aligns with recent growth rates. Without significant medium-term performance improvement, maintaining the current P/S ratio may be challenging.
Unprofitable yet, share price grew by 21% due to modest revenue growth over three years. If profitable, even moderate revenue growth could boost profits. Positive company sentiment indicated by 29% return for shareholders over last year.
Shenyang Machine Tool Stock Forum
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