Shenghe Resources Holding Stock Forum

The declining ROCE trend and lack of significant sales growth despite reinvestment in the business do not make Shenghe Resources Holding an attractive multi-bagger prospect. Investors may not be optimistic about this trend improving.

Shenghe Resources Holding's share price drop doesn't align with its revenue growth and profitability. The market's perception of the stock seems unaffected by its modest 1.4% dividend yield. The company's poor performance over the past year concludes a disappointing five-year run, with shareholders facing a total loss of 3% per year.

Shenghe Resources Holding's future revenue growth estimates are muted compared to the industry, yet it trades at a similar P/S ratio. This could suggest less bearish investor sentiment than analysts indicate, but may lead to disappointment if the P/S aligns with the growth outlook.

Investors' minor 13% stock gain over the last 5 years raises skepticism due to Shenghe Resources Holding's decreasing ROCE. Their capital use increases but sales growth doesn't follow.

Despite Shenghe Resources Holding's profit growth and positive return, its share price has recently dropped significantly, indicating a potential decline in market confidence or adverse market changes. Investors may see this as an opportunity, but should also consider the risks and check for sign of long-term growth.