Investors' high expectations for the company's revenue growth may lead to overpayment if not met. Despite poor recent growth, investors hope for a business turnaround, risking disappointment if the P/S falls due to negative growth rates.
Jiangxi Guoguang Commercial Chains' ROCE trend is uninspiring, having fallen over the past five years. The market is not optimistic about these trends improving soon. The company's reinvestment efforts have not produced increasing returns, an unusual trait for multi-baggers.
Despite declining revenues, the company's P/S ratio is higher than its industry peers, hinting at a potential share price drop. Unless recent medium-term circumstances improve, shareholders may face a tough period ahead.
Hope for recovery in business outlook can't mask company's recent poor growth. If medium-term revenue growth trends persist, it could affect shareholder investments and share price, risking overpayment for prospective investors despite high P/S.
Jiangxi Guoguang Commercial Chains' declining ROCE and minimal stock gain suggest underconfidence in profitable reinvestment chances and investor underenthusiasm.
Jiangxi Guoguang Commercial Chains Stock Forum
No comment yet