Changshu Tianyin Electromechanical Stock Forum

Investors are shifting focus from EPS to revenue growth. Changshu Tianyin Electromechanical Ltd's share price momentum is attracting attention, but there are 3 warning signs, one of which is potentially serious.

Changshu Tianyin Electromechanical Ltd's high P/S ratio and slower-than-industry revenue growth indicate a significant risk of share price decrease. Continuation of recent medium-term revenue trends could put shareholders and potential investors at significant risk.

Increasing skepticism surrounds Changshu Tianyin Electromechanical Ltd's future returns due to the ongoing downward trend in ROCE. The persisting reduction in returns with a constant amount of capital employed could indicate saturated growth and potentially declining long-term performance.

Investors in Changshu Tianyin Electromechanical seemingly value revenue growth over EPS decline. The company's decision to prioritise revenue growth, along with a total shareholder return of 106% mainly due to dividends in the last five years, implies improved business performance.

Low ROE and reduced net income over five years could threaten share price momentum. Lack of dividend suggests company's focus on reinvesting profits. Yet, it's crucial to question if the projected earnings growth is reflected in the share price.