The GSI Technology, Inc. (NASDAQ:GSIT) share price has softened a substantial 26% over the previous 30 days, handing back much of the gains the stock has made lately. The drop over the last 30 days has capped off a tough year for shareholders, with the share price down 45% in that time.
Even after such a large drop in price, you could still be forgiven for feeling indifferent about GSI Technology's P/S ratio of 3.4x, since the median price-to-sales (or "P/S") ratio for the Semiconductor industry in the United States is also close to 4.1x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.
NasdaqGS:GSIT Price to Sales Ratio vs Industry May 14th 2024
How Has GSI Technology Performed Recently?
As an illustration, revenue has deteriorated at GSI Technology over the last year, which is not ideal at all. Perhaps investors believe the recent revenue performance is enough to keep in line with the industry, which is keeping the P/S from dropping off. If you like the company, you'd at least be hoping this is the case so that you could potentially pick up some stock while it's not quite in favour.
Although there are no analyst estimates available for GSI Technology, take a look at this free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.
What Are Revenue Growth Metrics Telling Us About The P/S?
There's an inherent assumption that a company should be matching the industry for P/S ratios like GSI Technology's to be considered reasonable.
Retrospectively, the last year delivered a frustrating 27% decrease to the company's top line. As a result, revenue from three years ago have also fallen 22% overall. Therefore, it's fair to say the revenue growth recently has been undesirable for the company.
Comparing that to the industry, which is predicted to deliver 47% growth in the next 12 months, the company's downward momentum based on recent medium-term revenue results is a sobering picture.
In light of this, it's somewhat alarming that GSI Technology's P/S sits in line with the majority of other companies. Apparently many investors in the company are way less bearish than recent times would indicate and aren't willing to let go of their stock right now. There's a good chance existing shareholders are setting themselves up for future disappointment if the P/S falls to levels more in line with the recent negative growth rates.
What We Can Learn From GSI Technology's P/S?
Following GSI Technology's share price tumble, its P/S is just clinging on to the industry median 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.
The fact that GSI Technology currently trades at a P/S on par with the rest of the industry is surprising to us since its recent revenues have been in decline over the medium-term, all while the industry is set to grow. Even though it matches the industry, we're uncomfortable with the current P/S ratio, as this dismal revenue performance is unlikely to support a more positive sentiment for long. If recent medium-term revenue trends continue, it will place shareholders' investments at risk and potential investors in danger of paying an unnecessary premium.
We don't want to rain on the parade too much, but we did also find 5 warning signs for GSI Technology (3 are significant!) that you need to be mindful of.
If you're unsure about the strength of GSI Technology'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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在过去的 30 天里,GSI Technology, Inc.(纳斯达克股票代码:GSIT)的股价大幅下跌了26%,回吐了该股近期的大部分涨幅。 过去30天的下跌结束了股东艰难的一年,当时股价下跌了45%。
即使在价格大幅下跌之后,你对GSI Technology的3.4倍市盈率漠不关心还是可以原谅的,因为美国半导体行业的中位数市销率(或 “市盈率”)也接近4.1倍。但是,如果市销率没有合理的基础,投资者可能会忽略明显的机会或潜在的挫折。
纳斯达克GS: GSIT 与行业的股价销售比率 2024 年 5 月 14 日
GSI Technology 最近的表现如何?
举例来说,去年,GSI Technology的收入有所下降,这根本不理想。也许投资者认为最近的收入表现足以与该行业保持一致,这阻止了市销率的下降。如果你喜欢这家公司,你至少希望情况确实如此,这样你就有可能在它不太受青睐的情况下买入一些股票。
尽管没有分析师对GSI Technology的估计,但请看一下这个免费的数据丰富的可视化图表,看看该公司在收益、收入和现金流方面的积累情况。
收入增长指标告诉我们有关市销率的哪些信息?
人们固有的假设是,公司应该与行业相匹配,以使像GSI Technology这样的市销率被认为是合理的。
回顾过去,去年的公司收入下降了27%,令人沮丧。结果,三年前的总体收入也下降了22%。因此,可以公平地说,最近的收入增长对公司来说是不可取的。
相比之下,该行业预计将在未来12个月内实现47%的增长,根据最近的中期收入业绩,该公司的下滑势头令人震惊。
有鉴于此,GSI Technology的市销率与其他多数公司持平,这有点令人震惊。显然,该公司的许多投资者并不像最近所表明的那样看跌,他们现在不愿意放弃股票。如果市销率降至更符合近期负增长率的水平,现有股东很有可能为未来的失望做好准备。
我们可以从GSI Technology的市销率中学到什么?
在GSI Technology股价暴跌之后,其市盈率仅保持行业中位数。仅使用市销售比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。
GSI Technology目前的市销率与该行业其他公司持平,这一事实令我们感到惊讶,因为该公司最近的收入在中期内一直在下降,而该行业仍将增长。尽管它与行业相匹配,但我们对当前的市销率感到不舒服,因为这种惨淡的收入表现不太可能长期支持更积极的情绪。如果最近的中期收入趋势持续下去,将使股东的投资面临风险,潜在投资者面临支付不必要的溢价的危险。
我们不想在游行队伍中下太多雨,但我们还发现了 GSI Technology 的 5 个警告标志(3 个很重要!)这是你需要注意的。
如果您不确定GSI Technology的业务实力,为什么不浏览我们的交互式股票清单,其中列出了您可能错过的其他一些公司的业务基础稳健的股票。
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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。