Extra Disagreeable Surprises May Be In Retailer For Hana Know-how Co., Ltd.’s (KOSDAQ:299030) Shares After Tumbling 31%

The Hana Know-how Co., Ltd. (KOSDAQ:299030) share worth has fared very poorly over the past month, falling by a considerable 31%. The current drop completes a disastrous twelve months for shareholders, who’re sitting on a 57% loss throughout that point.

Even after such a big drop in worth, given near half the businesses working in Korea’s Equipment business have price-to-sales ratios (or “P/S”) beneath 1x, you should still contemplate Hana Know-how as a inventory to probably keep away from with its 2.5x P/S ratio. Nonetheless, we would have to dig a bit of deeper to find out if there’s a rational foundation for the elevated P/S.

Try our newest evaluation for Hana Know-how

KOSDAQ:A299030 Value to Gross sales Ratio vs Business June twenty eighth 2024

How Has Hana Know-how Carried out Just lately?

With income development that is inferior to most different firms of late, Hana Know-how has been comparatively sluggish. One risk is that the P/S ratio is excessive as a result of traders assume this lacklustre income efficiency will enhance markedly. Nevertheless, if this is not the case, traders would possibly get caught out paying an excessive amount of for the inventory.

If you would like to see what analysts are forecasting going ahead, you must try our free report on Hana Know-how.

Do Income Forecasts Match The Excessive P/S Ratio?

The one time you would be actually snug seeing a P/S as excessive as Hana Know-how’s is when the corporate’s development is on monitor to outshine the business.

Retrospectively, the final 12 months delivered nearly the identical quantity to the corporate’s high line because the 12 months earlier than. Nevertheless, just a few robust years earlier than that signifies that it was nonetheless capable of develop income by a formidable 31% in complete over the past three years. Accordingly, shareholders might be happy, but additionally have some inquiries to ponder in regards to the final 12 months.

Turning to the outlook, the subsequent 12 months ought to generate development of 29% as estimated by the one analyst watching the corporate. With the business predicted to ship 33% development, the corporate is positioned for a weaker income outcome.

With this info, we discover it regarding that Hana Know-how is buying and selling at a P/S greater than the business. Apparently many traders within the firm are far more bullish than analysts point out and are not keen to let go of their inventory at any worth. Solely the boldest would assume these costs are sustainable as this degree of income development is more likely to weigh closely on the share worth finally.

What We Can Study From Hana Know-how’s P/S?

There’s nonetheless some elevation in Hana Know-how’s P/S, even when the identical cannot be stated for its share worth just lately. Utilizing the price-to-sales ratio alone to find out for those who ought to promote your inventory is not wise, nonetheless it may be a sensible information to the corporate’s future prospects.

We have concluded that Hana Know-how at the moment trades on a a lot greater than anticipated P/S since its forecast development is decrease than the broader business. After we see a weak income outlook, we suspect the share worth faces a a lot larger threat of declining, bringing again down the P/S figures. At these worth ranges, traders ought to stay cautious, notably if issues do not enhance.

Earlier than you agree in your opinion, we have found 2 warning indicators for Hana Know-how that try to be conscious of.

If firms with stable previous earnings development is up your alley, it’s possible you’ll want to see this free assortment of different firms with robust earnings development and low P/E ratios.

Valuation is advanced, however we’re serving to make it easy.

Discover out whether or not Hana Know-how is probably over or undervalued by trying out our complete evaluation, which incorporates truthful worth estimates, dangers and warnings, dividends, insider transactions and monetary well being.

View the Free Evaluation

Have suggestions on this text? Involved in regards to the content material? Get in contact with us immediately. Alternatively, electronic mail editorial-team (at) simplywallst.com.

This text by Merely Wall St is normal in nature. We offer commentary primarily based on historic knowledge and analyst forecasts solely utilizing an unbiased methodology and our articles usually are not meant to be monetary recommendation. It doesn’t represent a suggestion to purchase or promote any inventory, and doesn’t take account of your goals, or your monetary state of affairs. We purpose to carry you long-term targeted evaluation pushed by basic knowledge. Notice that our evaluation might not issue within the newest price-sensitive firm bulletins or qualitative materials. Merely Wall St has no place in any shares talked about.

Valuation is advanced, however we’re serving to make it easy.

Discover out whether or not Hana Know-how is probably over or undervalued by trying out our complete evaluation, which incorporates truthful worth estimates, dangers and warnings, dividends, insider transactions and monetary well being.

View the Free Evaluation

Have suggestions on this text? Involved in regards to the content material? Get in contact with us immediately. Alternatively, electronic mail editorial-team@simplywallst.com

Leave a Comment