The market's perception of future underperformance due to lack of revenue growth could be hurting the P/S. The company's lower P/S ratio, compared to industry peers, is due to declining revenue. Investors may doubt the potential for revenue improvement to justify a higher P/S ratio.
Analysts expect that declining revenues might lead to a further fall in Shenzhen Zowee Technology's P/S ratio and potentially cause shareholder disappointment. Absence of mid-term revenue growth can stagnate the share price around its current levels.
The market's positive reaction to Shenzhen Zowee Technology's revenue drop indicates an improved sentiment. The firm's 46% total shareholder return, heavily outweighing a five-year annual loss of 0.8%, suggests a potential performance turnaround.
Shenzhen Zowee Technology maintains a good debt balance, backed by significant net cash. However, scepticism about the company's stock remains due to unimpressive revenue growth. Notably, its capacity to handle hefty liabilities without dilution is in question.
Shenzhen Zowee Technology Stock Forum
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