ValueHD's falling ROCE and revenue suggest a potential loss in competitive advantage or market share. Despite a 13% stock return last year, the weak fundamentals make it a less appealing investment.
The company's low P/E ratio is due to sliding medium-term earnings. Investors believe the potential for earnings improvement doesn't justify a higher P/E ratio. Unless medium-term conditions improve, they will continue to hinder the share price.
ValueHD's decent financial indicators and high reinvestment rate could potentially boost its stock in the long-term. The company's earnings growth, comparable to the industry average, suggests efficient management and high earnings retention.
ValueHD Corporation Stock Forum
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