Despite an already strong run, Sweetgreen, Inc. (NYSE:SG) shares have been powering on, with a gain of 64% in the last thirty days. The annual gain comes to 253% following the latest surge, making investors sit up and take notice.
Since its price has surged higher, you could be forgiven for thinking Sweetgreen is a stock to steer clear of with a price-to-sales ratios (or "P/S") of 6.2x, considering almost half the companies in the United States' Hospitality industry have P/S ratios below 1.3x. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the highly elevated P/S.
NYSE:SG Price to Sales Ratio vs Industry May 21st 2024
How Has Sweetgreen Performed Recently?
Sweetgreen could be doing better as it's been growing revenue less than most other companies lately. Perhaps the market is expecting future revenue performance to undergo a reversal of fortunes, which has elevated the P/S ratio. If not, then existing shareholders may be very nervous about the viability of the share price.
If you'd like to see what analysts are forecasting going forward, you should check out our free report on Sweetgreen.
Do Revenue Forecasts Match The High P/S Ratio?
In order to justify its P/S ratio, Sweetgreen would need to produce outstanding growth that's well in excess of the industry.
Retrospectively, the last year delivered an exceptional 25% gain to the company's top line. The latest three year period has also seen an excellent 169% overall rise in revenue, aided by its short-term performance. Accordingly, shareholders would have definitely welcomed those medium-term rates of revenue growth.
Turning to the outlook, the next three years should generate growth of 17% each year as estimated by the nine analysts watching the company. Meanwhile, the rest of the industry is forecast to only expand by 12% per annum, which is noticeably less attractive.
With this information, we can see why Sweetgreen is trading at such a high P/S compared to the industry. Apparently shareholders aren't keen to offload something that is potentially eyeing a more prosperous future.
The Final Word
Shares in Sweetgreen have seen a strong upwards swing lately, which has really helped boost its P/S figure. Generally, our preference is to limit the use of the price-to-sales ratio to establishing what the market thinks about the overall health of a company.
Our look into Sweetgreen shows that its P/S ratio remains high on the merit of its strong future revenues. It appears that shareholders are confident in the company's future revenues, which is propping up the P/S. Unless these conditions change, they will continue to provide strong support to the share price.
We don't want to rain on the parade too much, but we did also find 2 warning signs for Sweetgreen that you need to be mindful of.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
尽管已经表现强劲,Sweetgreen, Inc.(纽约证券交易所代码:SG)的股价仍在不断上涨,在过去三十天里上涨了64%。在最近的飙升之后,年涨幅达到253%,这使投资者坐下来注意了。
由于Sweetgreen的价格飙升,你认为Sweetgreen是一只值得避开的股票,其市销率(或 “市盈率”)为6.2倍,这是可以原谅的,因为美国酒店业几乎有一半公司的市盈率低于1.3倍。但是,我们需要更深入地挖掘,以确定市销售率大幅上升是否有合理的依据。
纽约证券交易所:新加坡与行业的股价销售比率 2024年5月21日
Sweetgreen 最近的表现如何?
Sweetgreen可能会做得更好,因为它最近的收入增长幅度低于大多数其他公司。也许市场预计未来的收入表现将发生逆转,这提高了市销率。如果不是,那么现有股东可能会对股价的可行性感到非常担忧。
如果你想了解分析师对未来的预测,你应该查看我们关于Sweetgreen的免费报告。
收入预测与高市销率相匹配吗?
为了证明其市销率是合理的,Sweetgreen需要实现远远超过该行业的出色增长。
回顾过去,去年的公司收入实现了25%的惊人增长。在短期表现的推动下,最近三年的总体收入也实现了169%的出色增长。因此,股东们肯定会对这些中期收入增长率表示欢迎。
展望来看,根据关注该公司的九位分析师的估计,未来三年每年将实现17%的增长。同时,预计该行业的其他部门每年仅增长12%,这明显降低了吸引力。
有了这些信息,我们可以明白为何与行业相比,Sweetgreen的市销率如此之高。显然,股东们并不热衷于转移可能着眼于更繁荣未来的东西。
最后一句话
Sweetgreen的股价最近强劲上涨,这确实有助于提高其市销率。通常,我们倾向于限制使用市销率来确定市场对公司整体健康状况的看法。
我们对Sweetgreen的调查表明,由于其未来收入强劲,其市销率仍然很高。看来股东对公司未来的收入充满信心,这支撑了市销率。除非这些条件发生变化,否则他们将继续为股价提供强有力的支撑。
我们不想在游行队伍中下太多雨,但我们也发现了 Sweetgreen 的 2 个警告标志,你需要注意。
如果过去盈利增长稳健的公司处于困境,那么你可能希望看到这些盈利增长强劲、市盈率低的其他公司的免费集合。
对这篇文章有反馈吗?对内容感到担忧吗?请直接联系我们。或者,也可以发送电子邮件至编辑团队 (at) simplywallst.com。
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。