Unfortunately for some shareholders, the BIT Mining Limited (NYSE:BTCM) share price has dived 26% in the last thirty days, prolonging recent pain. Still, a bad month hasn't completely ruined the past year with the stock gaining 29%, which is great even in a bull market.
Following the heavy fall in price, BIT Mining's price-to-sales (or "P/S") ratio of 0.8x might make it look like a strong buy right now compared to the wider Software industry in the United States, where around half of the companies have P/S ratios above 4.4x and even P/S above 11x are quite common. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's so limited.
NYSE:BTCM Price to Sales Ratio vs Industry March 21st 2024
What Does BIT Mining's P/S Mean For Shareholders?
BIT Mining 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. Perhaps the P/S remains low as investors think the prospects of strong revenue growth aren't on the horizon. If this is the case, then existing shareholders will probably struggle to get excited about the future direction of the share price.
Keen to find out how analysts think BIT Mining's future stacks up against the industry? In that case, our free report is a great place to start.
How Is BIT Mining's Revenue Growth Trending?
BIT Mining's P/S ratio would be typical for a company that's expected to deliver very poor growth or even falling revenue, and importantly, perform much worse than the industry.
Taking a look back first, the company's revenue growth last year wasn't something to get excited about as it posted a disappointing decline of 93%. In spite of this, the company still managed to deliver immense revenue growth over the last three years. Therefore, it's fair to say the revenue growth recently has been superb for the company, but investors will want to ask why it is now in decline.
Shifting to the future, estimates from the lone analyst covering the company suggest revenue should grow by 32% over the next year. With the industry only predicted to deliver 15%, the company is positioned for a stronger revenue result.
In light of this, it's peculiar that BIT Mining's P/S sits below the majority of other companies. Apparently some shareholders are doubtful of the forecasts and have been accepting significantly lower selling prices.
The Bottom Line On BIT Mining's P/S
Having almost fallen off a cliff, BIT Mining's share price has pulled its P/S way down as well. 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.
To us, it seems BIT Mining currently trades on a significantly depressed P/S given its forecasted revenue growth is higher than the rest of its industry. There could be some major risk factors that are placing downward pressure on the P/S ratio. While the possibility of the share price plunging seems unlikely due to the high growth forecasted for the company, the market does appear to have some hesitation.
It's always necessary to consider the ever-present spectre of investment risk. We've identified 5 warning signs with BIT Mining (at least 2 which can't be ignored), and understanding them should be part of your investment process.
If strong companies turning a profit tickle your fancy, then you'll want to check out this free list of interesting companies that trade on a low P/E (but have proven they can grow earnings).
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.
不幸的是，对于一些股东来说，BIT Mining Limited（纽约证券交易所股票代码：BTCM）的股价在过去 30 天内下跌了 26%，延续了近期的痛苦。尽管如此，糟糕的月份并没有完全毁掉过去的一年，该股上涨了29％，即使在牛市中也是不错的。
在价格大幅下跌之后，与美国整个软件行业相比，BIT Mining的0.8倍市销率（或 “市销率”）可能使其看起来像是一个强劲的买盘，在美国，大约一半的公司的市销率高于4.4倍，甚至市盈率高于11倍也很常见。但是，仅按面值计算市销率是不明智的，因为可以解释其为何如此有限。
纽约证券交易所：BTCM与行业的股价销售比率2024年3月21日
BIT Mining的市销率对股东意味着什么？
BIT Mining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。也许市销率仍然很低，因为投资者认为强劲收入增长的前景尚未到来。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。
想了解分析师如何看待BIT Mining的未来与该行业的对立吗？在这种情况下，我们的免费报告是一个很好的起点。
BIT Mining的收入增长趋势如何？
对于一家预计增长非常糟糕甚至收入下降的公司，BIT Mining的市销率是典型的，而且重要的是，其表现要比该行业差得多。
首先回顾一下，该公司去年的收入增长并不令人兴奋，因为它公布了令人失望的93％的跌幅。尽管如此，该公司在过去三年中仍然设法实现了巨大的收入增长。因此，可以公平地说，该公司最近的收入增长非常出色，但投资者会想问一下为什么收入现在呈下降趋势。
展望未来，报道该公司的唯一分析师的估计表明，明年收入将增长32％。由于预计该行业的收入仅为15％，该公司有望实现更强劲的收入业绩。
有鉴于此，奇怪的是，BIT Mining的市销率低于其他多数公司。显然，一些股东对预测持怀疑态度，并一直在接受大幅降低的销售价格。
BIT Mining 市销率的底线
在几乎跌下悬崖之后，BIT Mining的股价也大幅下调了市销率。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。
在我们看来，鉴于其预测的收入增长高于该行业的其他部门，BIT Mining目前的市销率似乎严重低迷。可能有一些主要的风险因素给市销率带来下行压力。尽管由于预计该公司将实现高增长，股价暴跌的可能性似乎不大，但市场似乎确实有些犹豫。
始终有必要考虑永远存在的投资风险幽灵。我们已经确定了BIT Mining的5个警告信号（至少有2个不容忽视），了解它们应该是您投资过程的一部分。
如果你喜欢实力雄厚的公司盈利，那么你会想看看这份以低市盈率（但已证明可以增加收益）的有趣公司的免费名单。
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。
