Shanghai Moons' Electric's falling ROCE trend is concerning. Despite reinvestment, returns are dropping. If this continues, its chances of becoming a multi-bagger are slim.
The high P/S ratio of Shanghai Moons' Electric could be justified given that its projected revenue growth significantly outruns the industry predictions. Shareholders seem confident about the firm's future revenues and this confidence seems to be supporting the stock price.
Shanghai Moons' Electric's declining ROCE trend isn't favoured by potential multi-baggers. Yet, investors remain optimistic due to the stock's significant growth in the past five years. Caution is advised until underlying metrics shift.
Shanghai Moons'Electric Stock Forum
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