Investors may be overlooking the company's average recent growth rates, paying a premium for stock exposure. If recent medium-term revenue trends persist, it could depress the share price. The high P/S ratio, average revenue, and industry-like growth could risk a share price decline.
The market's focus on top line growth due to small profit and lack of revenue growth justifies the stock's recent performance. Investors may anticipate future growth or cost cutting. Long-term performance has been weak, with shareholders facing a 4% loss per year over five years.
The low ROCE and high capital employed suggest a less profitable investment. The decline in stock over five years indicates market recognition of changes. Until a better ROCE is shown, considering other investments could be wise.
Guocheng Mining Stock Forum
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