Dongil Steelux Co., Ltd. (KOSDAQ:023790) May Have Run Too Fast Too Soon With Recent 33% Price Plummet
Dongil Steelux Co., Ltd. (KOSDAQ:023790) shares have retraced a considerable 33% in the last month, reversing a fair amount of their solid recent performance. Looking at the bigger picture, even after this poor month the stock is up 86% in the last year.
Although its price has dipped substantially, given around half the companies in Korea’s Metals and Mining industry have price-to-sales ratios (or “P/S”) below 0.3x, you may still consider Dongil Steelux as a stock to avoid entirely with its 3.1x 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.
