The company's consistent ROCE and increased capital deployment without a corresponding increase in returns are not typical characteristics of multi-bagger stocks. The market does not seem optimistic about these trends improving in the near future.
Investors' expectations of the company outperforming the market and superior earnings outlook contribute to its high P/E ratio. The potential for earnings deterioration isn't seen as significant enough to justify a lower P/E ratio.
With high capital investment in China Marine Information Electronics failing to yield increased returns, the unchanged ROCE and soft stock returns sap investor confidence. Prospective investors may benefit from considering alternative high-yield prospects.
Market sentiment towards the stock has remained consistent with its EPS decline. Unresolved challenges highlighted by company's performance over time warrant investor caution.
China Marine Information Electronics Stock Forum
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