With a price-to-sales (or "P/S") ratio of 0.8x SATS Ltd. (SGX:S58) may be sending bullish signals at the moment, given that almost half of all the Infrastructure companies in Singapore have P/S ratios greater than 2x and even P/S higher than 4x are not unusual. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the reduced P/S.
SGX:S58 Price to Sales Ratio vs Industry June 4th 2024
What Does SATS' P/S Mean For Shareholders?
Recent times have been advantageous for SATS as its revenues have been rising faster than most other companies. It might be that many expect the strong revenue performance to degrade substantially, which has repressed the share price, and thus the P/S ratio. If the company manages to stay the course, then investors should be rewarded with a share price that matches its revenue figures.
Keen to find out how analysts think SATS' future stacks up against the industry? In that case, our free report is a great place to start.
Do Revenue Forecasts Match The Low P/S Ratio?
In order to justify its P/S ratio, SATS would need to produce sluggish growth that's trailing the industry.
If we review the last year of revenue growth, the company posted a terrific increase of 193%. Spectacularly, three year revenue growth has ballooned by several orders of magnitude, thanks in part to the last 12 months of revenue growth. So we can start by confirming that the company has done a tremendous job of growing revenue over that time.
Looking ahead now, revenue is anticipated to climb by 6.3% per year during the coming three years according to the eight analysts following the company. Meanwhile, the rest of the industry is forecast to expand by 13% per year, which is noticeably more attractive.
With this in consideration, its clear as to why SATS' P/S is falling short industry peers. It seems most investors are expecting to see limited future growth and are only willing to pay a reduced amount for the stock.
The Bottom Line On SATS' P/S
We'd say the price-to-sales ratio's power isn't primarily as a valuation instrument but rather to gauge current investor sentiment and future expectations.
As expected, our analysis of SATS' analyst forecasts confirms that the company's underwhelming revenue outlook is a major contributor to its low P/S. Shareholders' pessimism on the revenue prospects for the company seems to be the main contributor to the depressed P/S. Unless these conditions improve, they will continue to form a barrier for the share price around these levels.
Having said that, be aware SATS is showing 1 warning sign in our investment analysis, you should know about.
If these risks are making you reconsider your opinion on SATS, explore our interactive list of high quality stocks to get an idea of what else is out there.
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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.
由於市銷率(或 “市盈率”)爲0.8倍,新加坡證券交易所有限公司(新加坡證券交易所股票代碼:S58)目前可能會發出看漲信號,因爲新加坡幾乎有一半的基礎設施公司的市盈率大於2倍,甚至市盈率高於4倍的情況並不少見。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。
新加坡證券交易所:S58 與行業的股價銷售比率 2024 年 6 月 4 日
SATS的市銷率對股東意味着什麼?
最近對SATS來說是有利的,因爲其收入的增長速度快於大多數其他公司。許多人可能預計,強勁的收入表現將大幅下降,這抑制了股價,從而抑制了市銷率。如果公司設法堅持下去,那麼投資者應該獲得與其收入數字相匹配的股價作爲獎勵。
想了解分析師如何看待SATS的未來與該行業的對立嗎?在這種情況下,我們的免費報告是一個很好的起點。
收入預測與低市銷率相匹配嗎?
爲了證明其市銷率是合理的,SATS需要實現落後於該行業的緩慢增長。
如果我們回顧一下去年的收入增長,該公司公佈了193%的驚人增長。引人注目的是,三年的收入增長激增了幾個數量級,這在一定程度上要歸功於過去12個月的收入增長。因此,我們可以首先確認該公司在這段時間內在增加收入方面做得非常出色。
根據關注該公司的八位分析師的說法,展望未來,預計未來三年收入每年將增長6.3%。同時,預計該行業的其他部門每年將增長13%,這明顯更具吸引力。
考慮到這一點,SATS的市銷率爲何低於行業同行,就顯而易見了。看來大多數投資者預計未來增長有限,只願意爲股票支付較少的金額。
SATS 市銷率的底線
我們可以說,市銷比率的力量主要不是作爲一種估值工具,而是用來衡量當前的投資者情緒和未來預期。
正如預期的那樣,我們對SATS分析師預測的分析證實,公司令人難以置信的收入前景是其低市銷率的主要原因。股東對公司收入前景的悲觀情緒似乎是市銷率低迷的主要原因。除非這些條件改善,否則它們將繼續構成股價在這些水平附近的障礙。
話雖如此,請注意,SATS在我們的投資分析中顯示了一個警告信號,你應該知道。
如果這些風險讓你重新考慮對SATS的看法,請瀏覽我們的高質量股票互動清單,了解還有什麼。
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。