KCC Corporation’s (KRX:002380) 26% Share Price Surge Not Quite Adding Up
KCC Corporation (KRX:002380) shares have had a really impressive month, gaining 26% after a shaky period beforehand. Notwithstanding the latest gain, the annual share price return of 3.1% isn’t as impressive.
In spite of the firm bounce in price, it’s still not a stretch to say that KCC’s price-to-sales (or “P/S”) ratio of 0.3x right now seems quite “middle-of-the-road” compared to the Chemicals industry in Korea, where the median P/S ratio is around 0.7x. 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.
