Shenzhen Forms Syntron Information's high P/S ratio and weak medium-term revenue trends may not justify its current share price. Overly bullish investors could face disappointment if the P/S falls to match recent growth rates.

The company's declining ROCE and increased capital employment without a corresponding increase in sales suggest that its investments may be longer-term plays. However, if these trends continue, the likelihood of the stock being a multi-bagger from here isn't high.

Despite solid growth, Shenzhen Forms Syntron Information's weaker momentum compared to the industry and high P/S ratio could risk investors. Persistence of recent medium-term revenue trends may drop the share price, potential risk for current investors.

The market values Shenzhen Forms Syntron Information for its revenue growth rather than low EPS. Its small dividend yield also seems to have minimal impact on the share price, even as its long-term performance stays strong.