Xinchen China Power Holdings Limited (HKG:1148) shareholders would be excited to see that the share price has had a great month, posting a 40% gain and recovering from prior weakness. Unfortunately, despite the strong performance over the last month, the full year gain of 8.3% isn't as attractive.
In spite of the firm bounce in price, it's still not a stretch to say that Xinchen China Power Holdings' price-to-sales (or "P/S") ratio of 0.1x right now seems quite "middle-of-the-road" compared to the Auto Components industry in Hong Kong, where the median P/S ratio is around 0.6x. 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.
Check out our latest analysis for Xinchen China Power Holdings
What Does Xinchen China Power Holdings' Recent Performance Look Like?
Recent times have been quite advantageous for Xinchen China Power Holdings as its revenue has been rising very briskly. It might be that many expect the strong revenue performance to wane, which has kept the share price, and thus the P/S ratio, from rising. If you like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's not quite in favour.
Although there are no analyst estimates available for Xinchen China Power Holdings, take a look at this free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.
Is There Some Revenue Growth Forecasted For Xinchen China Power Holdings?
Xinchen China Power 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.
If we review the last year of revenue growth, the company posted a terrific increase of 236%. The strong recent performance means it was also able to grow revenue by 105% in total over the last three years. Accordingly, shareholders would have definitely welcomed those medium-term rates of revenue growth.
Comparing the recent medium-term revenue trends against the industry's one-year growth forecast of 35% shows it's noticeably less attractive.
In light of this, it's curious that Xinchen China Power 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. Maintaining these prices will be difficult to achieve as a continuation of recent revenue trends is likely to weigh down the shares eventually.
The Key Takeaway
Xinchen China Power Holdings appears to be back in favour with a solid price jump bringing its P/S back in line with other companies in the industry It's argued the price-to-sales ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator.
Our examination of Xinchen China Power 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. When we see weak revenue with slower than industry growth, we suspect the share price is at risk of declining, bringing the P/S back in line with expectations. Unless the recent medium-term conditions improve, it's hard to accept the current share price as fair value.
You should always think about risks. Case in point, we've spotted 3 warning signs for Xinchen China Power Holdings you should be aware of, and 2 of them make us uncomfortable.
If companies with solid past earnings growth is up your alley, you may wish to see this free collection of other companies with strong earnings growth and low P/E ratios.
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Xinchen China Power Holdings Limited (HKG:1148) の株価が大幅に上昇し、前の弱気相場から回復して40%の上昇率を記録したため、株主は喜んでいるでしょう。残念ながら、先月の強いパフォーマンスにもかかわらず、フルイヤーの収益は8.3%と魅力的ではありません。
価格回復にもかかわらず、香港の自動車部品業界の中央値のP/S比率が約0.6xであるのに対して、Xinchen China Power HoldingsのP/S比率が現在0.1xであり、かなり中途半端に思えます。ただし、説明なしに単にP/Sを無視することは賢明ではありません。投資家は独自の機会または高価な間違いを無視している可能性があるためです。
Xinchen China Power Holdingsの最新の分析をチェックしてください。
Xinchen China Power Holdingsの最近のパフォーマンスはどのようになっていますか?
最近の時期は、Xinchen China Power Holdingsにとってかなり有利であり、売上高が非常に迅速に増加しています。多くの人々が強い収益性の性能が衰えると予想しているため、株価とP/S比率が上昇していません。もし同社が好きなら、株価が好調でない状態で株式を購入することができるかもしれないと期待しているでしょう。
Xinchen China Power Holdingsのアナリスト予測はありませんが、この無料のデータ豊富な視覚化を見て、収益、売上高、キャッシュフローで同社がどのように比較されるかを見てください。
Xinchen China Power Holdingsには収益成長の予想がありますか?
Xinchen China Power HoldingsのP/S比率は、適度な成長を実現することが期待されている企業にとって典型的であり、業界と同様に実行することが重要です。
これに関連して、Xinchen China Power HoldingsのP/Sが他の多くの企業と同じラインにあるのは興味深いことです。明らかに、会社の投資家は、最近の時期が示唆するよりも弱気でなく、今すぐ株式を手放すことはできません。これらの価格を維持することは困難であり、最近の収益の傾向が株式をやがて圧迫する可能性があります。
重要なポイントは次のとおりです。
Xinchen China Power Holdingsは、堅固な価格上昇で業界の他の企業と同じラインに戻ったようです。P / S比率は特定の産業内では価値の劣る指標であると主張されていますが、事業の感情指標として強力な可能性があります。
Xinchen China Power Holdingsの調査では、3年間の低迷する売上高トレンドは、業界の現在の見通しよりも悪いため、予想通り、低いP/Sにはならないということが明らかになりました。いわゆる産業成長の時期が低迷し、業界の成長よりも鈍い売上高を見ると、株価が下落するリスクがあるため、P/S比率は予想通りに戻る可能性があります。最近の中期的な状況が改善しない限り、現在の株価を公正な価値として受け入れるのは難しいでしょう。
リスクについて常に考える必要があります。例えば、私たちはXinchen China Power Holdingsの3つの警告サインを発見し、そのうち2つは私たちに不快感を与えました。