ShenZhen RoadRover TechnologyLtd's high P/S ratio is alarming due to its falling revenue and the anticipated industry growth of 22% next year. Investors may be expecting a business turnaround, but there's a high risk of future disappointment if the P/S aligns with recent negative growth rates.
Despite poor financials and declining revenue, the company's high P/S ratio indicates potential over-optimism. This could lead to disappointment if the ratio aligns with recent negative growth rates. The high P/S ratio is concerning given the medium-term revenue decline.
The stock price increase despite revenue downsizing can suggest that market participants have positive future expectations for the company. Importantly, recent total shareholder return suggests that the company has improved its business performance recently, which may hint at business momentum.
Shenzhen Roadrover Technology Stock Forum
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