Raily Aesthetic Medicine International Holdings Limited (HKG:2135) shares have had a horrible month, losing 39% after a relatively good period beforehand. The recent drop completes a disastrous twelve months for shareholders, who are sitting on a 59% loss during that time.
In spite of the heavy fall in price, there still wouldn't be many who think Raily Aesthetic Medicine International Holdings' price-to-sales (or "P/S") ratio of 0.9x is worth a mention when the median P/S in Hong Kong's Healthcare industry is similar at about 0.8x. Although, it's not wise to simply ignore the P/S without explanation as investors may be disregarding a distinct opportunity or a costly mistake.
What Does Raily Aesthetic Medicine International Holdings' P/S Mean For Shareholders?
For example, consider that Raily Aesthetic Medicine International Holdings' financial performance has been poor lately as its revenue has been in decline. It might be that many expect the company to put the disappointing revenue performance behind them over the coming period, which has kept the P/S from falling. If not, then existing shareholders may be a little nervous about the viability of the share price.
Want the full picture on earnings, revenue and cash flow for the company? Then our free report on Raily Aesthetic Medicine International Holdings will help you shine a light on its historical performance.
Is There Some Revenue Growth Forecasted For Raily Aesthetic Medicine International Holdings?
Raily Aesthetic Medicine International Holdings' P/S ratio would be typical for a company that's only expected to deliver moderate growth, and importantly, perform in line with the industry.
Taking a look back first, the company's revenue growth last year wasn't something to get excited about as it posted a disappointing decline of 12%. This has soured the latest three-year period, which nevertheless managed to deliver a decent 6.3% overall rise in revenue. So we can start by confirming that the company has generally done a good job of growing revenue over that time, even though it had some hiccups along the way.
Comparing the recent medium-term revenue trends against the industry's one-year growth forecast of 16% shows it's noticeably less attractive.
In light of this, it's curious that Raily Aesthetic Medicine International Holdings' P/S sits in line with the majority of other companies. Apparently many investors in the company are less bearish than recent times would indicate and aren't willing to let go of their stock right now. They may be setting themselves up for future disappointment if the P/S falls to levels more in line with recent growth rates.
What Does Raily Aesthetic Medicine International Holdings' P/S Mean For Investors?
With its share price dropping off a cliff, the P/S for Raily Aesthetic Medicine International Holdings looks to be in line with the rest of the Healthcare industry. We'd say the price-to-sales ratio's power isn't primarily as a valuation instrument but rather to gauge current investor sentiment and future expectations.
Our examination of Raily Aesthetic Medicine International Holdings revealed its poor three-year revenue trends aren't resulting in a lower P/S as per our expectations, given they look worse than current industry outlook. Right now we are uncomfortable with the P/S as this revenue performance isn't likely to support a more positive sentiment for long. If recent medium-term revenue trends continue, the probability of a share price decline will become quite substantial, placing shareholders at risk.
Plus, you should also learn about these 3 warning signs we've spotted with Raily Aesthetic Medicine International Holdings (including 1 which makes us a bit uncomfortable).
It's important to make sure you look for a great company, not just the first idea you come across. So if growing profitability aligns with your idea of a great company, take a peek at this free list of interesting companies with strong recent earnings growth (and a low P/E).
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
有鉴于此,奇怪的是,Raily Aesthetic Medicine International Holdings的市销率与其他多数公司持平。显然,该公司的许多投资者并不像最近所表明的那样看跌,并且不愿意立即放弃股票。如果市销率降至更符合近期增长率的水平,他们可能会为未来的失望做好准备。
Raily Aesthetic Medicine 国际控股公司的市销率对投资者意味着什么?
随着股价跌下悬崖,Raily Aesthetic Medicine International Holdings的市销率似乎与医疗行业的其他股价持平。我们可以说,市销比率的力量主要不是作为一种估值工具,而是用来衡量当前的投资者情绪和未来预期。
我们对Raily Aestheuty Medicine International Holdings的审查显示,其糟糕的三年收入趋势并未导致市销率低于我们的预期,因为这些趋势看起来比当前的行业前景差。目前,我们对市销率感到不舒服,因为这种收入表现不太可能长期支撑更积极的情绪。如果最近的中期收入趋势继续下去,股价下跌的可能性将变得相当大,从而使股东面临风险。
另外,你还应该了解我们在Raily Aestheticy Medicine International Holdings发现的这三个警告信号(包括一个让我们有点不舒服的警告信号)。