The company's balance sheet is considered not fit due to its debt and liabilities. The EBIT loss and negative free cash flow over the last year make the stock risky. The company needs to improve its balance sheet over time.
Phenix Optical's recent revenue performance may signal future underperformance, hurting its P/S. Its P/S lags behind industry peers, indicating investors expect limited growth rates to persist and are willing to pay less for the stock. If medium-term revenue trends continue, a share price reversal seems unlikely.
Investors might tolerate the low P/S ratio with the company's mediocre revenue growth forecast, expected to lag behind the industry. Shareholders accept the low P/S anticipating unimpressive future revenue. Based on current trends, the share price might not see a turnaround soon.
Low P/S ratio could be due to the company's limited revenue growth potential, expected to lag behind the industry. Current shareholders may accept this as future revenue may not surprise positively. The share price may not change soon if revenue trends continue.
Investors may be justifying the low P/S ratio due to weak revenue growth expectations. Shareholders seem to accept this, predicting no future revenue surprises. If medium-term revenue trends persist, the share price may not rebound in the near future.
Investors could be justifying low P/S ratio due to limited revenue growth potential. Shareholders seem accepting as future revenue is not expected to surprise positively. If current revenue trends sustain, share price may not improve soon.
Given Phenix Optical's EBIT loss and the negative free cash flow, its debt level is viewed with caution. Despite the manageable market capitalization, the liabilities outweighing its cash and receivables mark the balance sheet as slightly strained.
Phenix Optics Stock Forum
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