The way I look at it is that all distributors have low price to sales ratios, so if a psr number is used as a measurement metric with distributors, it has to be looked at in the company's historical context. In that regard, the psr number you mentioned is okay imo - there were some years where the psr number was higher, some years lower. For me, the .15 number is not low enough to interest me. (I don't much use psr numbers with distributors - only a deciding event if the psr figure is outstandingly low.)
As regards ROE, the company does have a good ROE history. That's a big positive. No question. Those good numbers have to be weighed against the stock price though. Because otherwise companies with high ROE and a history of it, would be considered value stocks at any price they sold at.
I concluded after I scanned the company and weighed the things that I saw that interested me, that for me the buy price I determined I'd pay would've been somewhat below the current price at the time- as I stated essentially. Otherwise, I was aware of no good reason or information to influence a decision in the buy direction.
But you are right: Perhaps there were value investors who did have good reasons to buy. I only should speak for myself, and because I see it one way, doesn't make it the correct way. |
