The high P/S ratio may not be justified due to the company's recent revenue decline and lackluster medium-term growth. Investors may face disappointment if the P/S falls in line with the recent negative growth rates.
The current sell-off of Shenzhen Fine Made Electronics Group's stock could be a potential opportunity if the fundamental data continues to indicate long-term sustainable growth. However, investor sentiment for the company appears to be negative at present.
Investors' high expectations of a company turnaround is sustaining Shenzhen Fine Made Electronics Group's P/S ratio, despite lackluster recent growth. The P/S dropping to match the recent negative growth could pose a notable risk to current shareholders.
Shenzhen Fine Made Electronics Group's negative EBIT and falling revenue signal operational problems that could exacerbate its debt situation. It's seen as a risky investment.
Shenzhen Fine Made Electronics Group's long-term shareholders may experience significant returns despite weak short-term performance. The recent sell-off can present an investment opportunity in line with their long-term growth pattern.
Fine Made Microelectronics Group Stock Forum
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