Chengzhi's low P/S ratio could be a bullish signal despite price drop. However, mediocre revenue and lower growth forecast may be behind the low ratio, indicating a potentially less prosperous future.
Despite Chengzhi's profitability and increased revenue, the share price is declining. The CEO's pay is less than median at similar sized companies. The company's future earnings are crucial. Performance over the last year is concerning, but better than the broader market's loss.
Given the company's persistent declining trend in ROCE and stock price, it exhibits characteristics of a business in decline. Unless there's a significant change, it is unlikely that Chengzhi will manage to perform a turn-around and deliver high returns.
Chengzhi Co.,Ltd. Stock Forum
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