Shareholders should be cautious due to the company's high debt levels and liabilities exceeding its market capitalization. The company's future earnings will determine its ability to maintain a healthy balance sheet. Its operations need to improve quickly to attract interest due to its EBIT loss and negative free cash flow.
Despite Tangrenshen Group's strong revenue growth, its P/S ratio lags behind industry peers, indicating investor skepticism about future growth. The low P/S ratio suggests market doubts about revenue growth estimates.
Despite a share price drop, consistent revenue growth could boost sentiment. The 2% yearly return over five years suggests last year's loss may be temporary. However, investors should note identified warning signs for Tangrenshen Group.
Tangrenshen Group's hefty debt, EBIT loss over the past year and cash burn make it a high-risk stock. With an unhealthy balance sheet, shareholder dilution could ensue if lenders pressure for improvements.
Tangrenshen Group Stock Forum
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