DGL Group Limited (ASX:DGL) Stock Catapults 27% Though Its Price And Business Still Lag The Industry
DGL Group Limited (ASX:DGL) shares have continued their recent momentum with a 27% gain in the last month alone. Taking a wider view, although not as strong as the last month, the full year gain of 16% is also fairly reasonable.
Although its price has surged higher, DGL Group may still look like a strong buying opportunity at present with its price-to-sales (or “P/S”) ratio of 0.3x, considering almost half of all companies in the Chemicals industry in Australia have P/S ratios greater than 2.4x and even P/S higher than 11x aren’t out of the ordinary. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly reduced P/S.
