Tianshui Huatian Technology's low P/S ratio reflects its poor revenue prospects. Investors foresee limited growth, hence the reduced stock price. A turnaround is needed for a higher P/S ratio.
The company's rising debt and negative EBIT, along with a drop in revenue, make it a high-risk investment. Its balance sheet is unhealthy, and it has lost CN¥1.7b in negative free cash flow in the past year. The company's debt management ability is doubtful.
Tianshui Huatian Tech Co.'s low P/S ratio may reflect poor industry revenue outlook. Investors could perceive the potential for revenue growth doesn't warrant a higher P/S ratio, impeding the share price.
Tianshui Huatian Technology Stock Forum
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