The company's flat ROCE and increased capital deployment raise doubts about its high return investments. High current liabilities suggest suppliers or short-term creditors are funding a large part of the business. The stock's 32% return over five years indicates investors may be recognizing these trends.
Despite EPS drop, market may value other metrics like revenue growth more. Recent sell-off could be an opportunity, worth checking for long term growth signs.
The low ROE, despite high debt levels, is not a good result. Investors should consider how the company might perform if it was unable to borrow so easily, as credit markets do change over time.
Despite concerns over falling ROCE, rising liabilities, and weak sales trends, investors remain upbeat about stock's recent strong performance. However, shaky fundamentals warrant cautious handling of this stock.
Guangdong Construction Engineering Group Stock Forum
No comment yet