Despite declining revenue, the market may believe the company can outperform the industry, keeping the P/S ratio high. However, if not, investors might be overpaying. The company's recent growth is lower than industry forecast, and without significant improvement, the P/S ratio may decline.
The company's debt usage, EBIT loss, and negative free cash flow make it a risky investment. The balance sheet is currently poor but could improve. External risks also exist.
Jiangsu Boamax Technologies GroupLtd's high P/S ratio is alarming considering its recent performance and industry growth forecasts. Without a significant boost in medium-term performance, the P/S ratio may drop to a more reasonable level, potentially disappointing current investors.
The market seems to acknowledge the company's growth, extrapolating this into the stock's upward trend, despite the lack of profit. If fundamentals continue to indicate long-term growth, the current sell-off might present a buying opportunity.
Jiangsu Boamax Technologies GroupLtd's significant net debt, decrease in revenue, and EBIT loss, paired with larger total liabilities than cash and short-term receivables, render the company's financial outlook appears risky. The balance sheet is strained and demands cautious scrutiny.
Jiangsu Boamax Technologies Group Stock Forum
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