Luoxin Pharmaceuticals Group Stock Stock Forum

Despite poor financial performance and declining revenue, the company's P/S ratio aligns with the industry, suggesting less bearish investors. However, if the P/S falls in line with recent negative growth rates, shareholders may face disappointment. A share price decline could be imminent given the industry's growth forecasts and the company's declining revenue.

The company's debt is viewed as a risk due to its negative EBIT and significant revenue drop. The balance sheet is deemed unfit and the stock is considered highly risky. The company's use of debt, considering its liabilities and negative earnings, raises concerns.

Despite poor growth, the company trades at a P/S ratio similar to the industry. Investors may be overlooking this, hoping for a business turnaround, risking future disappointment if the P/S falls in line with negative growth rates.

The company's dropping revenue and EBIT loss reflect negatively on its ability to service its debt. The balance sheet is somewhat strained, requiring careful monitoring. There is a concern over negative free cash flow, making the company's position risky.