Shandong Sunpaper's decreasing ROCE trend over the last five years doesn't inspire confidence. Despite a 111% gain for shareholders, the company's reinvestment hasn't significantly boosted sales. If these trends continue, it may not be a multi-bagger going forward.
Shandong Sunpaper's low P/E ratio is due to its forecast growth being lower than the wider market. Shareholders accept this as they anticipate no pleasant surprises in future earnings. These conditions form a barrier for the share price.
The company's solid growth history boosts its regard among market participants. The overall positive perception may surpass slower EPS to share price growth, and its five-year TSR of 18% per year hints growth potential.
Shandong Sun Paper Stock Forum
No comment yet