HJ Shipbuilding & Construction Co., Ltd. (KRX:097230) Stock Catapults 26% Though Its Price And Business Still Lag The Industry
HJ Shipbuilding & Construction Co., Ltd. (KRX:097230) shareholders would be excited to see that the share price has had a great month, posting a 26% gain and recovering from prior weakness. Unfortunately, the gains of the last month did little to right the losses of the last year with the stock still down 20% over that time.
Even after such a large jump in price, given about half the companies operating in Korea’s Machinery industry have price-to-sales ratios (or “P/S”) above 0.9x, you may still consider HJ Shipbuilding & Construction as an attractive investment with its 0.1x P/S ratio. However, the P/S might be low for a reason and it requires further investigation to determine if it’s justified.
