While conducting research on my next stock pick or to add on my watchlist, I came across a promising stock. P/BV of 0.3X, P/E of 8.5X, and a growing revenue/profit trend for the past few years. It's a food/beverage manufacturing company. They have/are expanding their production lines and the general industry is expected to grow with the local economy.
But the catch is, it has a rather low ROE of 4% and pays no dividends.
Are those red flags meaning I should completely stay away, or could this still be a lucrative investment?
Edit: Some ratios: Current ratio of 1.55x, Debt ratio of 70%, Price/Sales of 0.33x
Submitted April 22, 2017 at 01:55PM by learner1314 http://ift.tt/2p7p8ct
