Despite a revenue drop, the market expects the company to outperform, keeping the P/S ratio high. However, if this fails, investors may overpay. The high P/S ratio may not sustain without revenue improvement. Investors should also consider the company's 2 warning signs.
Apprehensions linger about Guangdong Insight Brand Marketing due to decreasing ROCE trend and returns, in spite of more capital deployed. Yet, shareholders might hope for a turn around.
Company's high P/S ratio and inadequate growth compared to industry poses risk of share price drop. Justifying the current share price may be difficult sans significant improvement in recent medium-term conditions.
Guangdong Insight Brand Marketing Group Stock Forum
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