Pinning Down Pfizer Inc.'s (NYSE:PFE) P/S Is Difficult Right Now
Pinning Down Pfizer Inc.'s (NYSE:PFE) P/S Is Difficult Right Now
With a median price-to-sales (or "P/S") ratio of close to 2.8x in the Pharmaceuticals industry in the United States, you could be forgiven for feeling indifferent about Pfizer Inc.'s (NYSE:PFE) P/S ratio of 2.5x. Although, it's not wise to simply ignore the P/S without explanation as investors may be disregarding a distinct opportunity or a costly mistake.
How Has Pfizer Performed Recently?
While the industry has experienced revenue growth lately, Pfizer's revenue has gone into reverse gear, which is not great. Perhaps the market is expecting its poor revenue performance to improve, keeping the P/S from dropping. If not, then existing shareholders may be a little 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 Pfizer.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 Pfizer's to be considered reasonable.
In reviewing the last year of financials, we were disheartened to see the company's revenues fell to the tune of 42%. Still, the latest three year period has seen an excellent 40% overall rise in revenue, in spite of its unsatisfying short-term performance. Accordingly, while they would have preferred to keep the run going, shareholders would definitely welcome the medium-term rates of revenue growth.
Turning to the outlook, the next three years should generate growth of 2.6% per annum as estimated by the analysts watching the company. Meanwhile, the rest of the industry is forecast to expand by 17% each year, which is noticeably more attractive.
With this information, we find it interesting that Pfizer is trading at a fairly similar P/S compared to the industry. Apparently many investors in the company are less bearish than analysts indicate and aren't willing to let go of their stock right now. Maintaining these prices will be difficult to achieve as this level of revenue growth is likely to weigh down the shares eventually.
What Does Pfizer's P/S Mean For Investors?
While the price-to-sales ratio shouldn't be the defining factor in whether you buy a stock or not, it's quite a capable barometer of revenue expectations.
Given that Pfizer's revenue growth projections are relatively subdued in comparison to the wider industry, it comes as a surprise to see it trading at its current P/S ratio. When we see companies with a relatively weaker revenue outlook compared to the industry, we suspect the share price is at risk of declining, sending the moderate P/S lower. This places shareholders' investments at risk and potential investors in danger of paying an unnecessary premium.
Having said that, be aware Pfizer is showing 4 warning signs in our investment analysis, and 2 of those shouldn't be ignored.
If you're unsure about the strength of Pfizer's business, why not explore our interactive list of stocks with solid business fundamentals for some other companies you may have missed.
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.
由於美國製藥行業的中位數市銷率(或 “市銷率”)接近2.8倍,你對輝瑞公司漠不關心是可以原諒的。”s(紐約證券交易所代碼:PFE)市銷率爲2.5倍。但是,不加解釋地忽略市銷率是不明智的,因爲投資者可能會忽視一個明顯的機會或一個代價高昂的錯誤。
輝瑞最近的表現如何?
儘管該行業最近經歷了收入增長,但輝瑞的收入卻倒退了,這並不好。也許市場預計其糟糕的收入表現將有所改善,從而防止市銷率下降。如果不是,那麼現有股東可能會對股價的可行性有些緊張。
如果你想了解分析師對未來的預測,你應該查看我們關於輝瑞的免費報告。收入增長指標告訴我們有關市銷率的哪些信息?
人們固有的假設是,公司應該與行業相匹配,以使輝瑞這樣的市銷率被認爲是合理的。
在回顧去年的財務狀況時,我們沮喪地看到該公司的收入下降至42%左右。儘管如此,儘管短期表現不令人滿意,但最近三年的總體收入仍增長了40%。因此,儘管股東們本來希望繼續經營,但他們肯定會歡迎中期收入增長率。
展望來看,根據關注該公司的分析師的估計,未來三年將實現每年2.6%的增長。同時,預計該行業的其他部門每年將增長17%,這明顯更具吸引力。
有了這些信息,我們發現有趣的是,輝瑞的市銷率與行業相似。顯然,該公司的許多投資者沒有分析師所表示的那麼看跌,並且不願意立即放棄股票。維持這些價格將很難實現,因爲這種收入增長水平最終可能會壓低股價。
輝瑞的市銷率對投資者意味着什麼?
儘管市銷率不應該成爲決定你是否買入股票的決定性因素,但它是衡量收入預期的有力晴雨表。
鑑於輝瑞的收入增長預測與整個行業相比相對疲軟,看到輝瑞目前的市銷率交易令人驚訝。當我們看到與該行業相比收入前景相對疲軟的公司時,我們懷疑股價有下跌的風險,從而使溫和的市銷售率走低。這使股東的投資面臨風險,潛在投資者面臨支付不必要的溢價的危險。
話雖如此,請注意,輝瑞在我們的投資分析中顯示了4個警告信號,其中2個不容忽視。
如果您不確定輝瑞業務的實力,爲什麼不瀏覽我們的互動式股票清單,其中列出了一些您可能錯過的其他公司,這些股票具有穩健的業務基本面。
對這篇文章有反饋嗎?對內容感到擔憂?直接聯繫我們。 或者,給編輯團隊 (at) simplywallst.com 發送電子郵件。
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,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本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型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。
譯文內容由第三人軟體翻譯。
風險及免責聲明
- 分享到weixin
- 分享到qq
- 分享到facebook
- 分享到twitter
- 分享到微博
- 粘贴板
使用瀏覽器的分享功能,分享給你的好友吧