Despite poor growth, the company's P/S ratio aligns with the Semiconductor industry. Investors hope for a business turnaround, but risk disappointment if P/S falls in line with negative growth rates. Given industry growth forecasts and recent revenue decline, a share price drop could be imminent.
The company's EBIT loss and liabilities, relative to cash, make it risky for the company to have any debt. The balance sheet is not in a good state but could improve over time. The company also had a negative free cash flow over the last twelve months, adding to the risk.
Despite Shenzhen Baoming Technology Co's underperformance, its high P/S ratio suggests investors maintain optimism. Yet, aligning with negative growth rates may lead to future disappointment. Current state of affairs indicate a challenging time ahead for shareholders.
Shenzhen Baoming Technology Stock Forum
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