Cosonic Intelligent Technologies' falling ROCE trend is concerning. Despite reinvestments, returns are declining and the stock has only given a 2.3% return in the last three years, indicating ineffective reinvestments.
Despite a recent share price drop, the P/E ratio indicates investors' doubt that the company's strong earnings growth will outperform the broader market soon. The company's medium-term earnings trajectory is less attractive compared to the broader market's one-year expansion forecast of 42%.
Cosonic Intelligent Technologies is reinvesting funds back into the business for growth but has not seen substantial sales growth yet. Therefore, from an investor's perspective, any expectations for multi-bagger returns should probably be moderated given the prevailing circumstances.
Cosonic Intelligent Technologies Stock Forum
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