Despite the recent rise in share price, BlueFocus Intelligent Communications Group's P/S is still subdued due to the company's underwhelming revenue outlook. The company will need a change of fortune to justify the P/S rising higher in the future.
The market may not be evaluating the company based on earnings growth due to the EPS and share price divergence. Management might be prioritizing revenue growth over EPS growth. The recent TSR improvement could suggest the business is improving over time.
BlueFocus Intelligent Communications Group may be a maturing business with limited growth prospects, indicated by declining ROCE and steady capital employed. Rising ratio of current liabilities to total assets could pose additional risks. Despite a 51% stock return over five years, current trends don't bode well for long-term performance.
The market anticipates limited future growth for BlueFocus Intelligent Communications Group, reflected in its lower P/S ratio. As investors are willing to pay less for the stock, a significant share price rise is unlikely soon.
The market doesn't seem to be assessing the company on earnings growth, with management seemingly focusing on revenue growth over EPS growth. The total shareholder return of 51% over the last five years majorly due to dividends impact.
BlueFocus's decreasing ROCE brings worry, despite 88% returned to shareholders in 5 years. The decline in return and rising reliance on short-term creditors may hurt long-term performance.
BlueFocus Intelligent Communications Group Stock Forum
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