While ChengDu Hi-Tech Development's ROE is commendable, the company's high level of debt is a concern. A high ROE is not always indicative of high profitability, especially when it is achieved through high debt levels, which can bring additional risk.
ChengDu Hi-Tech Development's high P/E ratio is alarming considering its limited growth. Investors' expectations for a business turnaround may lead to disappointment if the P/E aligns with recent growth rates. The company's three-year earnings trends aren't affecting its high P/E as anticipated, posing a risk to shareholders and potential investors.
Chengdu Hi-Tech Development Stock Forum
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