BGI Genomics' low ROE and net income growth are worrisome. Despite high reinvestment, the low ROE indicates that it's not benefiting investors and is hampering earnings growth. Caution is advised due to these factors.
Despite a significant drop in BGI Genomics' EPS and share price, the market still sees a promising future, as indicated by its high P/E ratio. Investors should monitor the company's fundamentals and be vigilant for warning signs.
Investors currently view BGI Genomics as an underperforming company, largely influenced by its poor revenue growth over the past years. Its P/S ratio may tumble further if the company fails to improve its revenue growth, leading to further investor disappointment.
BGI Genomics' low ROE and limited earnings growth, despite high profit retention, raise concerns about its financial performance and efficient use of equity capital and profits. The current price momentum may not be sustainable.
With a consistent decline in share price and EPS, BGI Genomics' investor sentiment is negative. Market likely factored in falling EPS with a high PE ratio at 79.62. Despite 'buy when blood's on the streets' philosophy, investors should consider the company's 3 warning signs, of which 2 are serious.
BGI Genomics Stock Forum
Last Friday, WuXi AppTec's shares tumble by 20% in Hong Kong and fall by a 10% limit-down in mainland China.
Other CRO stocks including Medicilon are also falling.
$WUXI BIO (02269.HK)$ $WUXI APPTEC (02359.HK)$ $BGI Genomics (300676.SZ)$ $MGI Tech Co., Ltd. (688114.SH)$ $Shanghai Medicilon Inc. (688202.SH)$ $Novo-Nordisk A/S (NVO.US)$ $Hang Seng H-Share Index ETF (02828.HK)$
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