Lacklustre Performance Is Driving Retail Food Group Limited’s (ASX:RFG) 25% Price Drop
Retail Food Group Limited (ASX:RFG) shareholders won’t be pleased to see that the share price has had a very rough month, dropping 25% and undoing the prior period’s positive performance. The drop over the last 30 days has capped off a tough year for shareholders, with the share price down 48% in that time.
Following the heavy fall in price, Retail Food Group’s price-to-sales (or “P/S”) ratio of 0.7x might make it look like a buy right now compared to the Hospitality industry in Australia, where around half of the companies have P/S ratios above 1.7x and even P/S above 4x are quite common. However, the P/S might be low for a reason and it requires further investigation to determine if it’s justified.
