Union Materials Corp.’s (KRX:047400) 53% Share Price Surge Not Quite Adding Up
Union Materials Corp. (KRX:047400) shareholders would be excited to see that the share price has had a great month, posting a 53% gain and recovering from prior weakness. But the gains over the last month weren’t enough to make shareholders whole, as the share price is still down 3.3% in the last twelve months.
Since its price has surged higher, when almost half of the companies in Korea’s Auto Components industry have price-to-sales ratios (or “P/S”) below 0.2x, you may consider Union Materials as a stock probably not worth researching with its 0.9x P/S ratio. However, the P/S might be high for a reason and it requires further investigation to determine if it’s justified.
