Guoguang Electric Stock Forum

The declining ROCE and revenue despite increased capital deployment could indicate that Guoguang Electric Ltd. Chengdu is losing its competitive advantage or market share. The stock's significant drop over the past year suggests that investors are recognizing these negative changes.

Guoguang Electric Co. maintains a high P/S ratio due to robust revenue forecasts. Despite a decrease in revenue, shareholders are optimistic of the company's long-term growth.

Despite Guoguang ElectricLtd.Chengdu's lower-than-average ROE, their net income growth rate, possibly linked to strong earnings retention or good management, is viewed positively. Analysts suggest their reinvestment strategy may boost future earnings growth.

The decline in Guoguang Electric Ltd. Chengdu's ROCE despite increased capital employed raises concerns about its future profitability and competitive positioning. This has reflected on its stock price, which has plummeted 35% over the past year.