Close Menu
Invest Intellect
    Facebook X (Twitter) Instagram
    Invest Intellect
    Facebook X (Twitter) Instagram Pinterest
    • Home
    • Commodities
    • Cryptocurrency
    • Fintech
    • Investments
    • Precious Metal
    • Property
    • Stock Market
    Invest Intellect
    Home»Commodities»Revenues Tell The Story For Dongguan Dingtong Precision Metal Co., Ltd. (SHSE:688668) As Its Stock Soars 36%
    Commodities

    Revenues Tell The Story For Dongguan Dingtong Precision Metal Co., Ltd. (SHSE:688668) As Its Stock Soars 36%

    October 18, 20244 Mins Read


    Dongguan Dingtong Precision Metal Co., Ltd. (SHSE:688668) shareholders would be excited to see that the share price has had a great month, posting a 36% gain and recovering from prior weakness. Looking back a bit further, it’s encouraging to see the stock is up 28% in the last year.

    Since its price has surged higher, when almost half of the companies in China’s Electrical industry have price-to-sales ratios (or “P/S”) below 2.2x, you may consider Dongguan Dingtong Precision Metal as a stock not worth researching with its 7.6x P/S ratio. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly elevated P/S.

    Check out our latest analysis for Dongguan Dingtong Precision Metal

    ps-multiple-vs-industry
    SHSE:688668 Price to Sales Ratio vs Industry October 18th 2024

    How Has Dongguan Dingtong Precision Metal Performed Recently?

    Dongguan Dingtong Precision Metal certainly has been doing a good job lately as it’s been growing revenue more than most other companies. It seems the market expects this form will continue into the future, hence the elevated P/S ratio. If not, then existing shareholders might be a little nervous about the viability of the share price.

    Want the full picture on analyst estimates for the company? Then our free report on Dongguan Dingtong Precision Metal will help you uncover what’s on the horizon.

    Is There Enough Revenue Growth Forecasted For Dongguan Dingtong Precision Metal?

    In order to justify its P/S ratio, Dongguan Dingtong Precision Metal would need to produce outstanding growth that’s well in excess of the industry.

    Taking a look back first, we see that the company managed to grow revenues by a handy 7.2% last year. This was backed up an excellent period prior to see revenue up by 77% in total over the last three years. So we can start by confirming that the company has done a great job of growing revenues over that time.

    Turning to the outlook, the next year should generate growth of 62% as estimated by the three analysts watching the company. That’s shaping up to be materially higher than the 23% growth forecast for the broader industry.

    With this in mind, it’s not hard to understand why Dongguan Dingtong Precision Metal’s P/S is high relative to its industry peers. It seems most investors are expecting this strong future growth and are willing to pay more for the stock.

    What Does Dongguan Dingtong Precision Metal’s P/S Mean For Investors?

    The strong share price surge has lead to Dongguan Dingtong Precision Metal’s P/S soaring as well. Using the price-to-sales ratio alone to determine if you should sell your stock isn’t sensible, however it can be a practical guide to the company’s future prospects.

    We’ve established that Dongguan Dingtong Precision Metal maintains its high P/S on the strength of its forecasted revenue growth being higher than the the rest of the Electrical industry, as expected. It appears that shareholders are confident in the company’s future revenues, which is propping up the P/S. Unless these conditions change, they will continue to provide strong support to the share price.

    Don’t forget that there may be other risks. For instance, we’ve identified 4 warning signs for Dongguan Dingtong Precision Metal (1 is potentially serious) you should be aware of.

    If you’re unsure about the strength of Dongguan Dingtong Precision Metal’s business, why not explore our interactive list of stocks with solid business fundamentals for some other companies you may have missed.

    New: Manage All Your Stock Portfolios in One Place

    We’ve created the ultimate portfolio companion for stock investors, and it’s free.

    • Connect an unlimited number of Portfolios and see your total in one currency
    • Be alerted to new Warning Signs or Risks via email or mobile
    • Track the Fair Value of your stocks

    Try a Demo Portfolio for Free

    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.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    FW’s Philip Clarke wins top agricultural journalist award

    Commodities

    U.S. Aluminum Prices Remain High After Novelis Fire Hit Supply Chain

    Commodities

    South Asian nations unite to advance agricultural innovation

    Commodities

    Bare-Metal Programming : A Beginner’s Guide to Low-Level Development

    Commodities

    Trump gave specific intelligence to Ukraine for strikes on Russian energy

    Commodities

    New Mexico has huge potential for geothermal energy—what will it take to harness it?

    Commodities
    Leave A Reply Cancel Reply

    Top Picks
    Precious Metal

    With KCM, Vedanta group to make a fresh-go at India’s growing copper demand | Company News

    Precious Metal

    13 Copper Hair Colors You’ll Love for Fall, From Smoky Cinnamon to Soft Strawberry

    Investments

    How To Navigate Retirement Savings If Your Company Suspends 401(k) Plan Matches

    Editors Picks

    Ghana’s cocoa sector set to benefit from new high-integrity carbon asset initiative

    August 28, 2025

    What NC State Chancellor Randy Woodson’s retirement means for the future of Poe Hall

    July 19, 2024

    The Ultimate One-Fund Portfolio Solution

    July 18, 2024

    Top 3 SGX Dividend Stocks To Consider In August 2024

    August 14, 2024
    What's Hot

    SA banks step up Africa drive amid fintech rivalry

    October 1, 2025

    Property influencer hits out at landlord who doesn’t want ‘African or English’ tenants in his homes – instead preferring Europeans

    February 17, 2025

    Investment Property Mortgage Rates 2024: What to Expect

    August 23, 2024
    Our Picks

    Dividend Stocks: HCL Tech, Fortis Healthcare, RBL Bank, among others to trade ex-dividend next week; Full list here

    July 20, 2024

    Qonto unifie sa gestion financière dans le cloud avec S/4HANA

    March 18, 2025

    Xi stresses people-to-people bonds – Chinadaily.com.cn

    October 11, 2024
    Weekly Top

    From 100-year-old mansion to Bel-Air home: Inside Diane Keaton’s luxurious real estate empire – Entertainment News

    October 13, 2025

    Trump Cryptocurrency Policies Boost XRP Tundra’s Arctic Appeal

    October 13, 2025

    LMEWEEK: Sharp divide between copper bulls and bears at industry gathering

    October 13, 2025
    Editor's Pick

    Next Cryptocurrency to Explode, 4 March — Pi, Ultima, PAX Gold, ACT I: The AI Prophecy

    March 4, 2025

    Fitch restores Delta’s investment-grade rating

    July 16, 2024

    Has UK commercial property turned a corner?

    October 8, 2024
    © 2025 Invest Intellect
    • Contact us
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.