The Caesarstone Ltd. (NASDAQ:CSTE) share price has done very well over the last month, posting an excellent gain of 63%. Looking back a bit further, it's encouraging to see the stock is up 60% in the last year.
Although its price has surged higher, Caesarstone may still be sending buy signals at present with its price-to-sales (or "P/S") ratio of 0.4x, considering almost half of all companies in the Building industry in the United States have P/S ratios greater than 1.5x and even P/S higher than 4x aren't out of the ordinary. However, the P/S might be low for a reason and it requires further investigation to determine if it's justified.
NasdaqGS:CSTE Price to Sales Ratio vs Industry April 25th 2024
How Caesarstone Has Been Performing
Caesarstone hasn't been tracking well recently as its declining revenue compares poorly to other companies, which have seen some growth in their revenues on average. It seems that many are expecting the poor revenue performance to persist, which has repressed the P/S ratio. If this is the case, then existing shareholders will probably struggle to get excited about the future direction of the share price.
If you'd like to see what analysts are forecasting going forward, you should check out our free report on Caesarstone.
Do Revenue Forecasts Match The Low P/S Ratio?
Caesarstone'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.
Retrospectively, the last year delivered a frustrating 18% decrease to the company's top line. Regardless, revenue has managed to lift by a handy 16% in aggregate from three years ago, thanks to the earlier period of growth. Although it's been a bumpy ride, it's still fair to say the revenue growth recently has been mostly respectable for the company.
Turning to the outlook, the next year should bring diminished returns, with revenue decreasing 6.3% as estimated by the two analysts watching the company. With the industry predicted to deliver 7.0% growth, that's a disappointing outcome.
With this in consideration, we find it intriguing that Caesarstone's P/S is closely matching its industry peers. However, shrinking revenues are unlikely to lead to a stable P/S over the longer term. Even just maintaining these prices could be difficult to achieve as the weak outlook is weighing down the shares.
What Does Caesarstone's P/S Mean For Investors?
Caesarstone's stock price has surged recently, but its but its P/S still remains modest. 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.
It's clear to see that Caesarstone maintains its low P/S on the weakness of its forecast for sliding revenue, as expected. Right now shareholders are accepting the low P/S as they concede future revenue probably won't provide any pleasant surprises. Unless these conditions improve, they will continue to form a barrier for the share price around these levels.
We don't want to rain on the parade too much, but we did also find 1 warning sign for Caesarstone that you need to be mindful of.
If you're unsure about the strength of Caesarstone's business, why not explore our interactive list of stocks with solid business fundamentals for some other companies you may have missed.
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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.
在过去的一个月里,Caesarstone Ltd(纳斯达克股票代码:CSTE)的股价表现非常出色,取得了63%的优异涨幅。再往前看,该股去年上涨了60%,令人鼓舞。
尽管价格飙升,但Caesarstone目前可能仍在发出买入信号,其市销率(或 “市盈率”)为0.4倍,因为美国建筑行业几乎有一半的公司的市销率超过1.5倍,即使市盈率高于4倍也并非不寻常。但是,市销率低可能是有原因的,需要进一步调查以确定其是否合理。
纳斯达克GS: CSTE与行业的股价销售比率2024年4月25日
Caesarstone的表现如何
Caesarstone最近表现不佳,其收入下降与其他公司相比表现不佳,后者的平均收入有所增长。看来许多人预计糟糕的收入表现将持续下去,这抑制了市销率。如果是这样的话,那么现有股东可能很难对股价的未来走向感到兴奋。
如果你想了解分析师对未来的预测,你应该查看我们关于凯撒斯通的免费报告。
收入预测与低市销率相匹配吗?
Caesarstone的市销率对于一家预计增长有限,而且重要的是表现不如行业的公司来说是典型的。
回顾过去,去年的公司收入下降了18%,令人沮丧。无论如何,得益于较早的增长,总收入已成功地比三年前增长了16%。尽管这是一个坎坷的旅程,但可以公平地说,该公司最近的收入增长基本上是可观的。
谈到前景,明年的回报应该会减少,根据关注该公司的两位分析师的估计,收入将下降6.3%。预计该行业将实现7.0%的增长,这是一个令人失望的结果。
考虑到这一点,我们发现Caesarstone的市销率与业内同行非常接近,这很有趣。但是,从长远来看,收入萎缩不太可能导致市销率稳定。由于疲软的前景压低了股价,即使仅仅维持这些价格也可能难以实现。
Caesarstone的市销率对投资者意味着什么?
Caesarstone的股价最近飙升,但其市销率仍然不高。仅使用市销率来确定是否应该出售股票是不明智的,但它可以作为公司未来前景的实用指南。
显而易见,由于对收入下滑的预测不如预期,Caesarstone维持了较低的市销率。目前,股东们正在接受低市销率,因为他们承认未来的收入可能不会带来任何惊喜。除非这些条件有所改善,否则它们将继续构成股价在这些水平附近的障碍。
我们不想在游行队伍中下太多雨,但我们也确实找到了一个你需要注意的Caesarstone警告标志。
如果您不确定Caesarstone的业务实力,为什么不浏览我们的互动式股票清单,这些股票具有稳健的业务基本面是您可能错过的其他公司。
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Simply Wall St的这篇文章本质上是笼统的。我们仅使用公正的方法根据历史数据和分析师的预测提供评论,我们的文章无意作为财务建议。它不构成买入或卖出任何股票的建议,也没有考虑到您的目标或财务状况。我们的目标是为您提供由基本数据驱动的长期重点分析。请注意,我们的分析可能不考虑最新的价格敏感型公司公告或定性材料。简而言之,华尔街没有持有任何上述股票的头寸。