The low P/S ratio may be due to the expectation of continued disappointing revenue performance. The company's shrinking revenues over the medium-term are contributing to its low P/S, given the industry is set to grow.
Investors betting on Sinodata's turnaround might be at risk due to its weak revenue growth. If current trends persist, potential share price drop and a lower P/S ratio could threaten shareholder investment.
Sinodata's share price has gained 11% each year in that time. Considering its current profitless state and falling revenues, the company requires closer scrutiny and caution unless it disseminates positive profitability soon.
Sinodata Co., Ltd. Stock Forum
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