South32 Limited’s (ASX:S32) 25% Dip In Price Shows Sentiment Is Matching Revenues
South32 Limited (ASX:S32) shareholders that were waiting for something to happen have been dealt a blow with a 25% share price drop in the last month. Instead of being rewarded, shareholders who have already held through the last twelve months are now sitting on a 18% share price drop.
Following the heavy fall in price, South32 may be sending very bullish signals at the moment with its price-to-sales (or “P/S”) ratio of 1.2x, since almost half of all companies in the Metals and Mining industry in Australia have P/S ratios greater than 52x and even P/S higher than 346x are not unusual. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly reduced P/S.
We’ve discovered 1 warning…
