FDB Holdings Limited (HKG:1826) shareholders won't be pleased to see that the share price has had a very rough month, dropping 38% and undoing the prior period's positive performance. The recent drop completes a disastrous twelve months for shareholders, who are sitting on a 55% loss during that time.
In spite of the heavy fall in price, you could still be forgiven for feeling indifferent about FDB Holdings' P/S ratio of 0.2x, since the median price-to-sales (or "P/S") ratio for the Construction industry in Hong Kong is also close to 0.3x. 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.
View our latest analysis for FDB Holdings
SEHK:1826 Price to Sales Ratio vs Industry January 19th 2024
What Does FDB Holdings' P/S Mean For Shareholders?
For example, consider that FDB Holdings' financial performance has been poor lately as its revenue has been in decline. One possibility is that the P/S is moderate because investors think the company might still do enough to be in line with the broader industry in the near future. 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.
Although there are no analyst estimates available for FDB Holdings, take a look at this free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.
How Is FDB Holdings' Revenue Growth Trending?
The only time you'd be comfortable seeing a P/S like FDB 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 13%. This means it has also seen a slide in revenue over the longer-term as revenue is down 62% in total over the last three years. So unfortunately, we have to acknowledge that the company has not done a great job of growing revenue over that time.
Comparing that to the industry, which is predicted to deliver 13% growth in the next 12 months, the company's downward momentum based on recent medium-term revenue results is a sobering picture.
In light of this, it's somewhat alarming that FDB Holdings' P/S sits in line with the majority of other companies. Apparently many investors in the company are way less bearish than recent times would indicate and aren't willing to let go of their stock right now. 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.
What We Can Learn From FDB Holdings' P/S?
FDB Holdings' plummeting stock price has brought its P/S back to a similar region as the rest of the industry. Generally, our preference is to limit the use of the price-to-sales ratio to establishing what the market thinks about the overall health of a company.
We find it unexpected that FDB Holdings trades at a P/S ratio that is comparable to the rest of the industry, despite experiencing declining revenues during the medium-term, while the industry as a whole is expected to grow. When we see revenue heading backwards in the context of growing industry forecasts, it'd make sense to expect a possible share price decline on the horizon, sending the moderate P/S lower. If recent medium-term revenue trends continue, it will place shareholders' investments at risk and potential investors in danger of paying an unnecessary premium.
We don't want to rain on the parade too much, but we did also find 3 warning signs for FDB Holdings (2 are potentially serious!) that you need to be mindful of.
If strong companies turning a profit tickle your fancy, then you'll want to check out this free list of interesting companies that trade on a low P/E (but have proven they can grow earnings).
FDB Holdings Limited(HKG: 1826)股東不會很高興看到股價經歷了一個非常艱難的月份,下跌了38%,抵消了前一時期的積極表現。對於股東來說,最近的下跌結束了災難性的十二個月,在此期間,股東虧損了55%。
儘管價格大幅下跌,但您對FDB Holdings的0.2倍市銷率漠不關心仍然是可以原諒的,因爲香港建築業的中位市銷售率(或 “市銷率”)也接近0.3倍。儘管這可能不會引起任何關注,但如果市銷率不合理,投資者可能會錯過潛在的機會或無視迫在眉睫的失望情緒。
查看我們對FDB Holdings的最新分析
SEHK: 1826 與行業的股價銷售比率 2024 年 1 月 19 日
FDB Holdings的市銷率對股東意味着什麼?
例如,假設FDB Holdings最近由於收入下降而財務表現不佳。一種可能性是市銷率適中,因爲投資者認爲公司在不久的將來可能仍然做得足夠多,足以與整個行業保持一致。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。
儘管沒有分析師對FDB Holdings的估計,但請看一下這個免費的數據豐富的可視化圖表,看看該公司的收益、收入和現金流是如何積累的。
FDB Holdings的收入增長趨勢如何?
只有當公司的增長密切關注行業時,你才能放心地看到像FDB Holdings這樣的市銷率。
首先回顧一下,該公司去年的收入增長並不令人興奮,因爲它公佈了令人失望的13%的跌幅。這意味着從長遠來看,其收入也出現了下滑,因爲在過去三年中,總收入下降了62%。因此,不幸的是,我們必須承認,在這段時間內,該公司在增加收入方面做得不好。
相比之下,該行業預計將在未來12個月內實現13%的增長,根據最近的中期收入業績,該公司的下滑勢頭令人震驚。
有鑑於此,FDB Holdings的市銷率與其他多數公司持平,這有點令人震驚。顯然,該公司的許多投資者並不像最近所表明的那樣看跌,他們現在不願意放棄股票。如果市銷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。
我們可以從FDB Holdings的市銷率中學到什麼?
FDB Holdings的股價暴跌使其市銷率回到了與該行業其他公司相似的區域。通常,我們傾向於限制使用市銷率來確定市場對公司整體健康狀況的看法。
我們感到意想不到的是,儘管中期收入下降,但FDB Holdings的市銷率與該行業其他部門相當,而整個行業預計將增長。在行業預測不斷增長的背景下,當我們看到收入倒退時,預計股價可能會下跌,從而使溫和的市銷率走低是有道理的。如果最近的中期收入趨勢持續下去,將使股東的投資面臨風險,潛在投資者面臨支付不必要的溢價的危險。
我們不想在遊行隊伍中下太多雨,但我們還發現了 FDB Holdings 的 3 個警告信號(2 個可能很嚴重!)你需要注意的。
如果你喜歡強勢的公司盈利,那麼你需要免費查看這份以低市盈率進行交易(但已證明可以增加收益)的有趣公司名單。