Sumavision TechnologiesLtd's high P/S ratio is alarming considering its recent poor growth. If the current revenue trends persist, it could adversely affect the share price. The company's declining revenue over the medium-term and the industry's growth forecast do not justify the high P/S ratio.
Sumavision TechnologiesLtd may be under competitive pressures and margin challenges due to declining ROCE and flat capital employed. The reduction in current liabilities could be impacting the company's ROCE generation efficiency. Despite a 3.6% return over the last five years, current trends don't bode well for future performance.
Sumavision's recent poor growth and medium-term revenue trends could risk shareholder investments and the high P/S ratio needs justifying by exceeding industry performance.
Current trends indicate that Sumavision TechnologiesLtd is not likely to experience growth in the near future. The declining ROCE trend and a consistent capital employed point towards a mature business dealing with competitive pressures.
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