Wuxi Smart Auto-control Engineering Stock Forum

The company's stagnant ROCE despite increased capital investment is not indicative of a high-growth, multi-bagger stock. The market also appears to be pessimistic about the company's prospects, as reflected in the stock's decline over the past five years.

Investors overlook limited growth rates, paying premium for stock exposure. Continuation of recent earnings trends may depress shares. Three-year earnings trends aren't impacting P/E as expected. Unless medium-term conditions improve, prices may be unreasonable.