Crawford & Company's (NYSE:CRD.B) price-to-sales (or "P/S") ratio of 0.4x may look like a pretty appealing investment opportunity when you consider close to half the companies in the Insurance industry in the United States have P/S ratios greater than 0.9x. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's limited.
Check out our latest analysis for Crawford
NYSE:CRD.B Price to Sales Ratio vs Industry August 31st 2023
What Does Crawford's P/S Mean For Shareholders?
Recent times haven't been great for Crawford as its revenue has been rising slower than most other companies. The P/S ratio is probably low because investors think this lacklustre revenue performance isn't going to get any better. If this is the case, then existing shareholders will probably struggle to get excited about the future direction of the share price.
Want the full picture on analyst estimates for the company? Then our free report on Crawford will help you uncover what's on the horizon.
Is There Any Revenue Growth Forecasted For Crawford?
Crawford's P/S ratio would be typical for a company that's only expected to deliver limited growth, and importantly, perform worse than the industry.
Taking a look back first, we see that the company managed to grow revenues by a handy 8.4% last year. Revenue has also lifted 28% in aggregate from three years ago, partly thanks to the last 12 months of growth. Therefore, it's fair to say the revenue growth recently has been respectable for the company.
Looking ahead now, revenue is anticipated to climb by 8.6% during the coming year according to the three analysts following the company. Meanwhile, the rest of the industry is forecast to only expand by 5.0%, which is noticeably less attractive.
With this in consideration, we find it intriguing that Crawford's P/S sits behind most of its industry peers. Apparently some shareholders are doubtful of the forecasts and have been accepting significantly lower selling prices.
What We Can Learn From Crawford's P/S?
Using the price-to-sales ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects.
A look at Crawford's revenues reveals that, despite glowing future growth forecasts, its P/S is much lower than we'd expect. There could be some major risk factors that are placing downward pressure on the P/S ratio. At least price risks look to be very low, but investors seem to think future revenues could see a lot of volatility.
Plus, you should also learn about these 2 warning signs we've spotted with Crawford.
If companies with solid past earnings growth is up your alley, you may wish to see this free collection of other companies with strong earnings growth and low P/E ratios.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Crawford & Company(紐約證券交易所股票代碼:CRD.B)的市銷率(或 "P/S")爲0.4倍,如果考慮到美國保險業近一半公司的市銷率超過0.9倍,這看起來可能是一個相當吸引人的投資機會。但是,僅按面值計算市盈率是不明智的,因爲可能可以解釋爲什麼市盈率有限。
查看我們對克勞福德的最新分析
紐約證券交易所:CRD.B 市銷售比率與行業對比 2023 年 8 月 31 日
克勞福德的市盈率對股東意味着什麼?
最近對克勞福德來說並不好,因爲其收入增長速度低於大多數其他公司。市盈率可能很低,因爲投資者認爲這種乏善可陳的收入表現不會好轉。如果是這樣的話,那麼現有股東可能很難對股價的未來走勢感到興奮。
想全面了解分析師對公司的估計嗎?然後我們的 免費的 關於克勞福德的報告將幫助你發現即將發生的事情。
預計克勞福德會有收入增長嗎?
對於一家預計增長有限且重要的是表現低於該行業的公司來說,克勞福德的市盈率將是典型的。
首先回顧一下,我們看到該公司去年成功地將收入增長了8.4%。收入也比三年前增長了28%,這在一定程度上要歸功於過去12個月的增長。因此,可以公平地說,最近的收入增長對公司來說是可觀的。
關注該公司的三位分析師表示,展望未來,預計來年的收入將增長8.6%。同時,預計該行業的其他部門將僅增長5.0%,這明顯不那麼吸引力。
考慮到這一點,我們發現克勞福德的市盈率落後於大多數行業同行,這很有趣。顯然,一些股東對這一預測持懷疑態度,並已接受大幅降低的銷售價格。
我們可以從克勞福德的 P/S 中學到什麼?
僅使用市銷比來確定是否應該出售股票是不明智的,但它可以作爲公司未來前景的實用指南。
看看克勞福德的收入就會發現,儘管未來增長預測樂觀,但其市盈率仍遠低於我們的預期。可能有一些主要的風險因素給市盈率帶來了下行壓力。至少價格風險看起來很低,但投資者似乎認爲未來的收入可能會出現很大的波動。
另外,你還應該了解這些 我們在克勞福德身上發現了 2 個警告信號。
如果過去盈利增長穩健的公司是你的選擇,你可能希望看到這個 免費的 彙集了其他盈利增長強勁且市盈率低的公司。
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Simply Wall St 的這篇文章本質上是籠統的。 我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。 它不構成買入或賣出任何股票的建議,也沒有考慮您的目標或財務狀況。我們的目標是爲您提供由基本面數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感公司公告或定性材料。簡而言之,華爾街在上述任何股票中都沒有頭寸。