A Piece Of The Puzzle Missing From Kawasaki Heavy Industries, Ltd.’s (TSE:7012) 36% Share Price Climb
Kawasaki Heavy Industries, Ltd. (TSE:7012) shares have had a really impressive month, gaining 36% after a shaky period beforehand. The last 30 days bring the annual gain to a very sharp 72%.
Although its price has surged higher, it’s still not a stretch to say that Kawasaki Heavy Industries’ price-to-sales (or “P/S”) ratio of 0.7x right now seems quite “middle-of-the-road” compared to the Machinery industry in Japan, where the median P/S ratio is around 0.6x. 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.
