Despite respectable recent revenue, the company's medium-term revenue shrinkage, coupled with industry growth forecasts, could lead to a share price decline and lower P/S ratio. Investors risk paying a premium if these trends persist.
The company's low P/S ratio is due to shrinking revenue over the medium-term, despite industry growth. Shareholders accept this, anticipating no future revenue surprises. Unless conditions improve, the share price will likely remain stagnant.
Shanghai Xinnanyang's low P/S is due to poor revenue growth compared to its industry. Without top-line growth improvement, the P/S could decline further, disappointing shareholders. The recent share price surge may not be sufficient to match the industry's median P/S, as medium-term revenue trends suggest limited share price momentum.
Shanghai Xinnanyang Only Education & Technology Stock Forum
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