Santech Holdings Limited’s (NASDAQ:STEC) 53% Share Price Plunge Could Signal Some Risk
Santech Holdings Limited (NASDAQ:STEC) shares have retraced a considerable 53% in the last month, reversing a fair amount of their solid recent performance. The good news is that in the last year, the stock has shone bright like a diamond, gaining 281%.
Although its price has dipped substantially, Santech Holdings’ price-to-sales (or “P/S”) ratio of 11.2x might still make it look like a strong sell right now compared to other companies in the Capital Markets industry in the United States, where around half of the companies have P/S ratios below 4x and even P/S below 1.9x are quite common. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly elevated P/S.
