Investors believe the company's strong revenue growth will surpass industry expectations, justifying its high P/S ratio. However, if this doesn't materialize, the stock may be overpriced. The company's promising three-year revenue trends and potential for future growth contribute to its inflated P/S.
Guangdong Orient Zirconic Ind Sci & Tech Co.,Ltd's high P/S ratio is seen as reasonable due to satisfactory revenue growth. However, the share price may decline if medium-term conditions don't improve, aligning the P/S with the industry.
The company's declining ROCE and growing liabilities-to-assets ratio suggest growth challenges and financial risks. Despite this, the stock yielded a 21% return to shareholders over the past five years. Persistent adverse trends, however, may curb its appeal to investors.
Guangdong Orient Zirconic ind sci & tech Stock Forum
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