Mianyang Fulin Precision's low P/S ratio may be due to market expectations of future revenue decline. Weaker future revenue growth compared to industry average may have caused shareholder discomfort, contributing to the low P/S ratio. A change in fortune is needed to justify a higher P/S ratio.
The company's historical ROCE trend is uninspiring, and the increase in capital employed indicates that the business isn't investing in high return investments. The chances of it becoming a multi-bagger are low if these trends persist.
The market's low expectations for future revenue are reflected in the low P/S ratio. Its inferior revenue outlook might be a factor. Many investors foresee limited growth, hence the reduced price they're willing to pay for the stock.
Fulin Precision Stock Forum
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