Investors may believe the company will underperform the industry, impacting its low P/S ratio. The company's declining revenue and medium-term trends could lead to future disappointment for shareholders and stagnant share price.

The company's balance sheet shows significant liabilities and a decrease in revenue. Negative EBIT and 2 warning signs make the stock very risky.

Investors' belief that the company may underperform the broader industry in the near future could be causing the low P/S ratio. The company's shrinking revenue over the medium term is a key factor in its low P/S ratio.

Shandong New Beiyang Information Technology's recent 5.5% total shareholder return hints at a potential positive business shift. However, the annualised 9% loss over five years is worrying. Investors should also note the company's 2 warning signs.