The falling ROCE and sales despite increased capital deployment are worrisome. These trends could negatively impact the company's long-term performance, suggesting alternative investment opportunities may be preferable.
Jinlongyu Group's low P/E ratio could reflect investor concerns over continued growth rates, with expectations of only limited future earnings. Therefore, if recent medium-term earnings trends persist, significant near-future share price growth appears unlikely.
The declining ROCE and sales, alongside increasing capital deployment, might indicate a loss of competitive advantage for Jinlongyu Group. Despite the respectable five-year stock return, without a potential improvement in fundamentals, the advisability of investment in the stock is questionable.
Jinlongyu Group Stock Forum
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