Despite EPS growth, market caution towards the stock increases. The company's future is uncertain, despite a past five-year TSR of 26% a year. Potential buyers may feel they've missed out, and there are 2 warning signs for investors.
Investors expect limited future growth, contributing to the company's low P/E ratio. Shareholders accept this as they believe future earnings won't provide pleasant surprises. A strong share price rise seems unlikely under these circumstances.
The company's ROCE trend suggests that it has been reinvesting capital and generating the same low rate of return as before. Given the underlying trends, it is unlikely to be a multi-bagger going forward.
Zhejiang Haikong Nanke Huatie Digital Intelligence & Technology Stock Forum
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