Investors believe the company's low P/S ratio is due to shrinking revenue, and the potential for revenue improvement doesn't justify a higher ratio. If recent trends continue, share price may remain stable.
The company's strained balance sheet, debt, and negative EBIT pose risks. Its ability to pay off debt is questionable, with flat revenue growth and negative EBIT. Investors should note the company's 2 warning signs.
Gohigh NetworksLtd's low P/S ratio is due to its medium-term revenue decline, contrasting with expected industry growth. Shareholders accept this, expecting no future revenue surprises. If these trends continue, the share price may remain stable.
Despite falling revenue, stocks rose 8% yearly over five years. The annual TSR of 32% last year surpasses the past five year average of 8%, possibly showing business improvement.
Despite Gohigh NetworksLtd's CN¥7.87b market capitalization, its balance sheet is unhealthy. Negative cash flow of CN¥180m past year, two warning signs and negative EBIT indicate risky, significant debt usage.
Gohigh Networks Stock Forum
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