Wuxi Taiji Industry Stock Forum

Wuxi Taiji Industry Limited's low P/S ratio is due to its forecast growth being lower than the wider industry. A change of fortune is needed to justify a higher P/S ratio in the future.

Wuxi Taiji Industry Limited, a mature business, hasn't seen much growth in the last five years, indicated by declining ROCE and steady capital employed. The increase in current liabilities could introduce risks. These trends may not be conducive to creating a multi-bagger, suggesting investors may want to look elsewhere.

The company's low P/S ratio is due to projected limited future growth. Despite decent medium-term revenue growth, market sentiments remain cautious about future performance. Unless significant changes occur at Wuxi Taiji, a substantial P/S increase seems unlikely.

Declining ROCE and growing current liabilities suggest Wuxi Taiji may not offer growth. Despite a 35% five-year return on its stock, if these trends continue, superior investments might be found elsewhere.

Although the company has seen profitability and revenue growth, the share price has fallen, suggesting a disconnect between stock performance and financial health. The recent 18% total shareholder return in the last year could signal improving business performance.