Despite Naruida Technology's share price surge, its high P/S ratio and weak revenue growth may be worrisome. Without notable medium-term performance improvement, the P/S ratio may drop to a more reasonable level.
Naruida Technology's P/S ratio is considered high given its slower industry growth rate. Without medium-term performance improvements, an anticipated P/S decline could lead to share price decrease, noting the stocks as a high risk.
Despite a weaker ROE, significant earnings growth speaks positively of corporate performance. Higher earnings growth could have been if more profits were retained. Initiating dividends may be a move to impress shareholders.
Naruida Technology Stock Forum
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