The declining ROCE trend at Guoanda is worrying. Despite reinvestment in its business, shrinking returns are a concern. The stock's 2.3% return over three years suggests better investment opportunities may exist elsewhere.
Despite Guoanda's revenue growth, its high P/S ratio may not be justified due to slower-than-industry growth. Unless medium-term performance improves significantly, the P/S ratio may decline, potentially decreasing the share price.
The analysis indicates concerning trends for Guoanda, with reinvestment in the business not generating increased returns. The market also appears pessimistic about these trends improving soon, impacting its stock performance.
Guoanda Co.,Ltd Stock Forum
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