Royal Group Co.,Ltd. Stock Forum

Despite revenue growth, Royal GroupLtd's CN¥63m EBIT loss and substantial debt raise concerns about its financial health. The company's balance sheet is deemed risky and in poor condition, though it may improve over time.

Despite strong revenue growth, Royal GroupLtd's P/S ratio remains low, likely due to investor anticipation of underperformance in the industry. The weak share price has pulled its P/S below other Food companies, as investors see limited potential for revenue improvement.

Royal Group Ltd's balance sheet weaknesses and CN¥37m negative cash flow over the past year imply risks, making it inadvisable for the company to carry any debt.

Despite Royal Group's significant growth, its low P/S compared to industry peers suggests investor skepticism about the company's ability to sustain growth rates. Possible hidden revenue threats could be keeping the P/S ratio from reflecting the company's true performance.