Shanghai Beite Technology's declining ROCE and steady capital employed suggest it's past its growth phase. Despite this, the stock has seen a 59% return over the last five years, indicating investor optimism. However, current trends don't bode well for long-term performance.
Despite recent revenue growth, the company's P/S ratio may lack a rational basis, potentially setting investors up for disappointment. The current share price may not reflect fair value unless medium-term conditions improve.
The declining ROCE trend at Shanghai Beite Technology is worrying. Given its lower returns from same capital employed compared to 5 years ago, the stock doesn't seem to be a compounding machine. High current liabilities and lower returns make this stock less attractive.
Shanghai Beite Technology Stock Forum
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