Those holding Chaoda Modern Agriculture (Holdings) Limited (HKG:682) shares would be relieved that the share price has rebounded 42% in the last thirty days, but it needs to keep going to repair the recent damage it has caused to investor portfolios. Not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 43% in the last twelve months.
Even after such a large jump in price, there still wouldn't be many who think Chaoda Modern Agriculture (Holdings)'s price-to-sales (or "P/S") ratio of 0.6x is worth a mention when the median P/S in Hong Kong's Food industry is similar at about 0.5x. 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.
View our latest analysis for Chaoda Modern Agriculture (Holdings)
What Does Chaoda Modern Agriculture (Holdings)'s Recent Performance Look Like?
Chaoda Modern Agriculture (Holdings) has been doing a decent job lately as it's been growing revenue at a reasonable pace. One possibility is that the P/S is moderate because investors think this good revenue growth might only be parallel to the broader industry in the near future. If not, then at least existing shareholders probably aren't too pessimistic about the future direction of the share price.
We don't have analyst forecasts, but you can see how recent trends are setting up the company for the future by checking out our free report on Chaoda Modern Agriculture (Holdings)'s earnings, revenue and cash flow.
Is There Some Revenue Growth Forecasted For Chaoda Modern Agriculture (Holdings)?
There's an inherent assumption that a company should be matching the industry for P/S ratios like Chaoda Modern Agriculture (Holdings)'s to be considered reasonable.
If we review the last year of revenue growth, the company posted a worthy increase of 5.1%. The latest three year period has also seen a 21% overall rise in revenue, aided somewhat by its short-term performance. Accordingly, shareholders would have probably been satisfied with the medium-term rates of revenue growth.
Weighing that recent medium-term revenue trajectory against the broader industry's one-year forecast for expansion of 7.8% shows it's about the same on an annualised basis.
With this information, we can see why Chaoda Modern Agriculture (Holdings) is trading at a fairly similar P/S to the industry. Apparently shareholders are comfortable to simply hold on assuming the company will continue keeping a low profile.
The Bottom Line On Chaoda Modern Agriculture (Holdings)'s P/S
Chaoda Modern Agriculture (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.
It appears to us that Chaoda Modern Agriculture (Holdings) maintains its moderate P/S off the back of its recent three-year growth being in line with the wider industry forecast. Currently, with a past revenue trend that aligns closely wit the industry outlook, shareholders are confident the company's future revenue outlook won't contain any major surprises. If recent medium-term revenue trends continue, it's hard to see the share price moving strongly in either direction in the near future under these circumstances.
It is also worth noting that we have found 2 warning signs for Chaoda Modern Agriculture (Holdings) that you need to take into consideration.
Of course, profitable companies with a history of great earnings growth are generally safer bets. So you may wish to see this free collection of other companies that have reasonable P/E ratios and have grown earnings strongly.
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.
価格が大幅に上昇しても、Chaoda Modern Agriculture(Holdings)の価格/売上高(または「P / S」)比率が0.6倍であることは、香港の食品産業の中央値が約0.5倍と同程度であると考える人はほとんどいないと思われます。ただし、単に説明を無視することは賢明とはいえません。投資家が明確な機会または高価な過ちを無視している可能性があります。
Chaoda Modern Agriculture(Holdings)の最新の分析をご覧ください。
チャオダ・モダン農業(ホールディングス)の最近のパフォーマンスはどのように見えますか?
Chaoda Modern Agriculture(Holdings)は、最近、収益を適度なペースで成長させているため、まあまあの仕事をしています。P / Sが適度である理由の1つは、投資家がこの良好な収益成長が近い将来、より広範な業界と並行するものと考えているためかもしれません。そうでなければ、少なくとも、既存の株主は株価の将来的な方向についてあまり悲観的ではない可能性があります。
アナリストの予測はありませんが、Chaoda Modern Agriculture(Holdings)の収益、収益、およびキャッシュフローに関する無料レポートをチェックすることで、最近のトレンドが今後の企業にどのように影響するかを確認できます。
Chaoda Modern Agriculture(Holdings)に予想される一定の収益成長がありますか?
Chaoda Modern Agriculture(Holdings)のP / S比率などの業界と一致することが企業の当然の前提となっています。
最近の中期的な収益推移を、業界の1年間の拡大予測と比較して、年率ベースでほぼ同じという事実を考慮すると、同じP / SでChaoda Modern Agriculture(Holdings)が取引されているのは理由があるように思えます。株主は、同社が低調な姿勢を維持し続けると仮定することに快適であるということです。
これらの情報から、Chaoda Modern Agriculture(Holdings)が業界とかなり似ているP / Sで取引されている理由がわかります。株主は、この会社が引き続き低姿勢を維持するだろうと想定して単に保持することに快適なようです。
Last Line On Chaoda Modern Agriculture(Holdings)'s P / S
Chaoda Modern Agriculture(Holdings)は、他の企業と同じくらいの業界のP / Sを守る堅実な価格上昇を示し、復活しているようです。P / S比率は、特定の産業で価値の劣った指標だと主張されていますが、ビジネスの感情指標となり得ます。