Unfortunately for some shareholders, the BT Brands, Inc. (NASDAQ:BTBD) share price has dived 27% in the last thirty days, prolonging recent pain. The recent drop completes a disastrous twelve months for shareholders, who are sitting on a 53% loss during that time.
Since its price has dipped substantially, given about half the companies operating in the United States' Hospitality industry have price-to-sales ratios (or "P/S") above 1.2x, you may consider BT Brands as an attractive investment with its 0.6x P/S ratio. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the reduced P/S.
NasdaqCM:BTBD Price to Sales Ratio vs Industry May 14th 2024
How BT Brands Has Been Performing
BT Brands has been doing a good job lately as it's been growing revenue at a solid pace. Perhaps the market is expecting this acceptable revenue performance to take a dive, which has kept the P/S suppressed. If you like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's out of favour.
We don't have analyst forecasts, but you can see how recent trends are setting up the company for the future by checking out our free report on BT Brands' earnings, revenue and cash flow.
Do Revenue Forecasts Match The Low P/S Ratio?
There's an inherent assumption that a company should underperform the industry for P/S ratios like BT Brands' to be considered reasonable.
If we review the last year of revenue growth, the company posted a worthy increase of 12%. This was backed up an excellent period prior to see revenue up by 73% in total over the last three years. Accordingly, shareholders would have definitely welcomed those medium-term rates of revenue growth.
Comparing that to the industry, which is only predicted to deliver 13% growth in the next 12 months, the company's momentum is stronger based on recent medium-term annualised revenue results.
In light of this, it's peculiar that BT Brands' P/S sits below the majority of other companies. Apparently some shareholders believe the recent performance has exceeded its limits and have been accepting significantly lower selling prices.
What We Can Learn From BT Brands' P/S?
BT Brands' P/S has taken a dip along with its share price. 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.
Our examination of BT Brands revealed its three-year revenue trends aren't boosting its P/S anywhere near as much as we would have predicted, given they look better than current industry expectations. When we see robust revenue growth that outpaces the industry, we presume that there are notable underlying risks to the company's future performance, which is exerting downward pressure on the P/S ratio. While recent revenue trends over the past medium-term suggest that the risk of a price decline is low, investors appear to perceive a likelihood of revenue fluctuations in the future.
You should always think about risks. Case in point, we've spotted 3 warning signs for BT Brands you should be aware of, and 2 of them are significant.
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.
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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.
對一些股東來說，不幸的是，BT Brands, Inc.(納斯達克股票代碼:BTBD)的股價在過去30天內已暴跌27%，延長了近期的痛苦。對於股東來說，最近的下跌結束了災難性的十二個月，在此期間，股東虧損了53％。
由於其價格已大幅下跌，鑑於在美國酒店業運營的公司中約有一半的市銷率（或 “市銷率”）高於1.2倍，您可以將 BT Brands的市銷率視爲一項具有吸引力的投資，其市銷率爲0.6倍。但是，我們需要更深入地挖掘以確定降低市銷率是否有合理的依據。
納斯達克股票代碼：BTBD 與行業的股價銷售比率 2024 年 5 月 14 日
BT Brands的表現如何
BT Brands最近表現不錯，收入一直在穩步增長。也許市場預計這種可接受的收入表現將下降，這使市銷率一直受到抑制。如果你喜歡這家公司，你希望情況並非如此，這樣你就有可能在它失寵的時候買入一些股票。
我們沒有分析師的預測，但您可以查看我們關於 BT Brands收益、收入和現金流的免費報告，了解最近的趨勢如何爲公司未來做好準備。
收入預測與低市銷率相匹配嗎？
人們固有的假設是，如果像 BT Brands這樣的市銷率被認爲是合理的，公司的表現應該低於該行業。
如果我們回顧一下去年的收入增長，該公司公佈了12％的可觀增長。在過去三年中，總收入增長了73％，此前這是一個很好的時期。因此，股東們肯定會對這些中期收入增長率表示歡迎。
相比之下，該行業預計在未來12個月內僅實現13％的增長，根據最近的中期年化收入業績，該公司的勢頭更強勁。
有鑑於此， BT Brands的市銷率低於其他多數公司是很奇怪的。顯然，一些股東認爲最近的表現已經超過了極限，並且一直在接受大幅降低的銷售價格。
我們可以從 BT Brands的市銷率中學到什麼？
BT Brands的市銷率與股價一起下跌。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。
我們對 BT Brands的調查顯示，其三年收入趨勢並沒有像我們預期的那樣提高市銷率，因爲它們看起來好於當前的行業預期。當我們看到強勁的收入增長超過行業時，我們認爲公司的未來業績存在明顯的潛在風險，這給市銷率帶來了下行壓力。儘管過去中期最近的收入趨勢表明價格下跌的風險很低，但投資者似乎認爲未來收入可能會出現波動。
你應該時刻考慮風險。舉個例子，我們發現了你應該注意的3個 BT Brands的警告信號，其中兩個信號很重要。
如果過去盈利增長穩健的公司處於困境，那麼你可能希望看到這些盈利增長強勁、市盈率低的其他公司的免費集合。
對這篇文章有反饋嗎？對內容感到擔憂嗎？請直接聯繫我們。或者，也可以發送電子郵件至編輯團隊 (at) simplywallst.com。
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。
