The company's balance sheet is deemed risky due to its debt level and operating loss. Despite revenue growth, the EBIT loss and liabilities relative to cash make it unwise to have any debt. The balance sheet could improve, but currently, it's unhealthy.
The company's high P/S ratio is alarming due to its slower revenue growth. Investors remain bullish, unwilling to sell their stock. Without medium-term performance improvement, the P/S ratio may decline. Three warning signs, including two serious ones, have been identified with the company.
Despite impressive revenue growth, market expectations of a slowdown may prevent the P/S ratio from rising. Investors hope this isn't the case, but slower industry growth could risk future share price decline unless conditions improve.
Shenyang Blue Silver Industry Automation Equipment Stock Forum
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