The declining ROCE and rising capital employed at SG Micro are worrisome, suggesting potential loss of competitive edge or market share. Current trends hint at poor long-term performance, advising to consider other investment opportunities unless reversed.
Despite middling revenue forecasts, SG Micro sees a high bull-bear gap with investors, as the high P/S ratio demonstrates. A drop to growth outlook-aligned levels could spell disappointment. Investors' premium risk ties with the high P/S ratio and unimpressive revenue projections.
The trend of decreasing ROCE and increasing capital employment raises concerns about the long-term performance of SG Micro. This may not be a good sign for investors, despite the marked growth in its stock over the past five years.
SG Micro Corp Stock Forum
No comment yet