Unfortunately for some shareholders, the VPower Group International Holdings Limited (HKG:1608) share price has dived 26% in the last thirty days, prolonging recent pain. The drop over the last 30 days has capped off a tough year for shareholders, with the share price down 35% in that time.
Although its price has dipped substantially, it's still not a stretch to say that VPower Group International Holdings' price-to-sales (or "P/S") ratio of 0.9x right now seems quite "middle-of-the-road" compared to the Electrical industry in Hong Kong, where the median P/S ratio is around 0.5x. While this might not raise any eyebrows, if the P/S ratio is not justified investors could be missing out on a potential opportunity or ignoring looming disappointment.
Check out our latest analysis for VPower Group International Holdings
What Does VPower Group International Holdings' P/S Mean For Shareholders?
For example, consider that VPower Group 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 you like the company, you'd at least be hoping this is the case so that you could potentially pick up some stock while it's not quite in favour.
Want the full picture on earnings, revenue and cash flow for the company? Then our free report on VPower Group International Holdings will help you shine a light on its historical performance.
What Are Revenue Growth Metrics Telling Us About The P/S?
The only time you'd be comfortable seeing a P/S like VPower Group International Holdings' is when the company's growth is tracking the industry closely.
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 47%. As a result, revenue from three years ago have also fallen 29% overall. So unfortunately, we have to acknowledge that the company has not done a great job of growing revenue over that time.
In contrast to the company, the rest of the industry is expected to grow by 24% over the next year, which really puts the company's recent medium-term revenue decline into perspective.
With this information, we find it concerning that VPower Group International Holdings is trading at a fairly similar P/S compared to the industry. It seems most investors are ignoring the recent poor growth rate and are hoping for a turnaround in the company's business prospects. There's a good chance existing shareholders are setting themselves up for future disappointment if the P/S falls to levels more in line with the recent negative growth rates.
The Key Takeaway
With its share price dropping off a cliff, the P/S for VPower Group International Holdings looks to be in line with the rest of the Electrical industry. Typically, we'd caution against reading too much into price-to-sales ratios when settling on investment decisions, though it can reveal plenty about what other market participants think about the company.
Our look at VPower Group International Holdings revealed its shrinking revenues over the medium-term haven't impacted the P/S as much as we anticipated, given the industry is set to grow. Even though it matches the industry, we're uncomfortable with the current P/S ratio, as this dismal revenue performance is unlikely to support a more positive sentiment for long. Unless the the circumstances surrounding the recent medium-term improve, it wouldn't be wrong to expect a a difficult period ahead for the company's shareholders.
Plus, you should also learn about these 4 warning signs we've spotted with VPower Group International Holdings (including 3 which are potentially serious).
If these risks are making you reconsider your opinion on VPower Group International Holdings, explore our interactive list of high quality stocks to get an idea of what else is out there.
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儘管其價格已大幅下跌,但可以毫不誇張地說,與香港電氣行業相比,vPower Group International Holdings目前0.9倍的市盈率(或 “市盈率”)似乎相當 “處於中間位置”,香港電氣行業的市盈率中位數約爲0.5倍。儘管這可能不會引起任何關注,但如果市盈率不合理,投資者可能會錯過潛在的機會或無視迫在眉睫的失望。
查看我們對vPower集團國際控股的最新分析
vPower Group International Holdings的市盈率對股東意味着什麼?
例如,假設由於收入下降,vPower Group International Holdings的財務表現不佳。許多人可能預計,該公司將在未來一段時間內將令人失望的收入表現拋在腦後,這阻止了市盈率的下降。如果你喜歡這家公司,你至少希望情況確實如此,這樣你就有可能在它不太受青睞的情況下買入一些股票。
有了這些信息,我們發現vPower Group International Holdings的交易市盈率與該行業相似。看來大多數投資者都忽視了最近的糟糕增長率,並希望公司的業務前景有所好轉。如果市盈率降至更符合近期負增長率的水平,現有股東很有可能爲未來的失望做好準備。
關鍵要點
隨着股價跌下懸崖,vPower Group International Holdings的市盈率似乎與其他電氣行業持平。通常,在做出投資決策時,我們謹慎行事,不要過多地考慮市售比率,儘管這可以揭示其他市場參與者對公司的看法。
我們對vPower Group International Holdings的調查顯示,鑑於該行業即將增長,其中期收入萎縮對市盈率的影響沒有我們預期的那麼大。儘管它與行業相匹配,但我們對當前的市盈率感到不舒服,因爲這種慘淡的收入表現不太可能長期支持更積極的情緒。除非近期中期情況有所改善,否則預計公司股東將面臨艱難時期是沒有錯的。