Eos Energy Enterprises, Inc. (NASDAQ:EOSE) shareholders are no doubt pleased to see that the share price has bounced 28% in the last month, although it is still struggling to make up recently lost ground. But the last month did very little to improve the 71% share price decline over the last year.
Following the firm bounce in price, given around half the companies in the United States' Electrical industry have price-to-sales ratios (or "P/S") below 1.7x, you may consider Eos Energy Enterprises as a stock to avoid entirely with its 13.5x P/S ratio. However, the P/S might be quite high for a reason and it requires further investigation to determine if it's justified.
How Has Eos Energy Enterprises Performed Recently?
Eos Energy Enterprises 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 market is expecting the poor revenue to reverse, justifying it's current high P/S.. You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason.
If you'd like to see what analysts are forecasting going forward, you should check out our free report on Eos Energy Enterprises.
Is There Enough Revenue Growth Forecasted For Eos Energy Enterprises?
The only time you'd be truly comfortable seeing a P/S as steep as Eos Energy Enterprises' is when the company's growth is on track to outshine the industry decidedly.
Retrospectively, the last year delivered a frustrating 40% decrease to the company's top line. 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 seven analysts covering the company suggest revenue should grow by 821% over the next year. With the industry only predicted to deliver 13%, the company is positioned for a stronger revenue result.
With this in mind, it's not hard to understand why Eos Energy Enterprises' P/S is high relative to its industry peers. It seems most investors are expecting this strong future growth and are willing to pay more for the stock.
The Bottom Line On Eos Energy Enterprises' P/S
Shares in Eos Energy Enterprises have seen a strong upwards swing lately, which has really helped boost its P/S figure. 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.
We've established that Eos Energy Enterprises maintains its high P/S on the strength of its forecasted revenue growth being higher than the the rest of the Electrical industry, as expected. Right now shareholders are comfortable with the P/S as they are quite confident future revenues aren't under threat. Unless the analysts have really missed the mark, these strong revenue forecasts should keep the share price buoyant.
Don't forget that there may be other risks. For instance, we've identified 5 warning signs for Eos Energy Enterprises (3 are potentially serious) you should be aware 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.
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Eos Energy Enterprises, Inc. (納斯達克代碼:EOSE)股東無疑高興地看到股價在上個月反彈了28%,儘管它仍然在努力彌補最近失去的地位。但過去一個月並沒有對去年的71%股價下跌改善太多。
考慮到美國電器行業約有一半的公司市銷率(或“ P/S”)低於1.7倍,因此建議避免購買Eos Energy Enterprises的股票,其市銷率爲13.5倍。然而,可能有充分的理由支撐市銷率高企,需要進一步調查才能確定是否正當。
Eos Energy Enterprises最近的表現如何?
Eos Energy Enterprises的營業收入比其他公司差,這一點在最近的營收增長方面得不到改善,這可能會導致市場預期它的營業收入不佳,從而使其目前的市銷率得到合理解釋。但你真的希望如此,否則你付出的代價就太高了,沒有任何特別的理由。
如果您想查看分析師的預測,請查看我們有關Eos Energy Enterprises的免費報告。
Eos Energy Enterprises的營業收入是否有足夠的增長預期?
只有在公司的增長勢頭明顯強於行業的情況下,您才會真正放心地看到Eos Energy Enterprises的市銷率如此之高。