Morris Home Holdings' high P/S ratio may be due to expectations of outperforming the industry. However, its recent revenue decline and underperformance could lead to a further drop in share price, posing a risk to shareholders and potential investors.

Morris Home's P/S ratio isn't as low as expected, despite shrinking revenue. Amid poor growth performance, investors banking on a turnaround could face disappointment if the P/S aligns with recent negative growth rates.