Investors believe the company's strong revenue growth may underperform the industry, leading to a low P/S ratio. The company's shrinking revenue and the industry's projected growth are key factors. Shareholders accept the low P/S, conceding future revenue may not surprise positively.
Despite a recent rebound in stock price, the company's weak fundamentals and disappointing five-year performance, marked by a significant drop in revenue and lack of profits, make it a risky investment. Dividends have only slightly mitigated the negative TSR.
The market's expectation of dwindling future revenue may suppress P/S. However, if this doesn't occur, shareholders could be optimistic about share price direction. Despite potential revenue improvement, the company's shrinking medium-term revenue and industry growth predictions may not justify a higher P/S ratio, forming a potential share price barrier.
Guangdong Wenke Green Technology Corp.,Ltd. Stock Forum
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