MLS's low P/S ratio is due to poor revenue performance and lower future growth expectations. Investors are paying less for the stock due to limited growth prospects. A significant change in fortune is needed for the P/S to rise.
The stock's 34% fall over the last five years suggests investors are recognizing the trend of lower returns on the same capital. Considering these trends, exploring other investment options may be advisable.
The low P/S ratio may stem from poor revenue performance and expected continuity of the same. A forecasted sluggish growth in revenue compared to the industry could be prompting withdrawals, causing the low P/S ratio and signaling doubt in future prosperity.
The degradation of ROCE, despite unchanged capital, indicates a lack of growth. Combined with a 25% stock decline over five years, this may lead investors to seek other options. A decrease in liabilities might suggest lesser efficiency in generating ROCE.
MLS Co.,Ltd. Stock Forum
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