Shenzhen Rapoo Technology's high P/S ratio is alarming due to its recent poor growth. Investors anticipate a business turnaround, but continued revenue trends could hurt the share price. Shareholders may face challenges unless medium-term circumstances improve.

Despite the company's constant capital employment transitioning into profitability, there may be a lack of internal investment opportunities for growth. Nonetheless, as the stock's 67% return over the last five years shows, investors recognize the company's changing fortunes and hold promising expectations.