Paranovus Entertainment Technology Ltd. (NASDAQ:PAVS) shares have had a really impressive month, gaining 128% after a shaky period beforehand. Not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 11% in the last twelve months.
In spite of the firm bounce in price, Paranovus Entertainment Technology's price-to-sales (or "P/S") ratio of 0.3x might still make it look like a buy right now compared to the Personal Products industry in the United States, where around half of the companies have P/S ratios above 1.3x and even P/S above 4x are quite common. However, the P/S might be low for a reason and it requires further investigation to determine if it's justified.
View our latest analysis for Paranovus Entertainment Technology
NasdaqCM:PAVS Price to Sales Ratio vs Industry August 28th 2023
How Has Paranovus Entertainment Technology Performed Recently?
The revenue growth achieved at Paranovus Entertainment Technology over the last year would be more than acceptable for most companies. One possibility is that the P/S is low because investors think this respectable revenue growth might actually underperform the broader industry in the near future. Those who are bullish on Paranovus Entertainment Technology will be hoping that this isn't the case, so that they can pick up the stock at a lower valuation.
Want the full picture on earnings, revenue and cash flow for the company? Then our free report on Paranovus Entertainment Technology will help you shine a light on its historical performance.
How Is Paranovus Entertainment Technology's Revenue Growth Trending?
The only time you'd be truly comfortable seeing a P/S as low as Paranovus Entertainment Technology's is when the company's growth is on track to lag the industry.
Retrospectively, the last year delivered a decent 9.7% gain to the company's revenues. Pleasingly, revenue has also lifted 51% in aggregate from three years ago, partly thanks to the last 12 months of growth. Accordingly, shareholders would have definitely welcomed those medium-term rates of revenue growth.
Comparing that to the industry, which is only predicted to deliver 6.6% growth in the next 12 months, the company's momentum is stronger based on recent medium-term annualised revenue results.
With this in mind, we find it intriguing that Paranovus Entertainment Technology's P/S isn't as high compared to that of its industry peers. It looks like most investors are not convinced the company can maintain its recent growth rates.
The Key Takeaway
Despite Paranovus Entertainment Technology's share price climbing recently, its P/S still lags most other companies. Typically, we'd caution against reading too much into price-to-sales ratios when settling on investment decisions, though it can reveal plenty about what other market participants think about the company.
We're very surprised to see Paranovus Entertainment Technology currently trading on a much lower than expected P/S since its recent three-year growth is higher than the wider industry forecast. 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.
Having said that, be aware Paranovus Entertainment Technology is showing 5 warning signs in our investment analysis, and 4 of those are a bit concerning.
If these risks are making you reconsider your opinion on Paranovus Entertainment Technology, 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.
Paranovus Entertainment Technology Ltd.(納斯達克股票代碼:PAVS)的股價在經歷了之前的震盪期後,本月的漲幅達到了128%,令人印象深刻。並非所有股東都會感到歡欣鼓舞,因爲在過去的十二個月中,股價仍下跌了非常令人失望的11%。
儘管價格出現反彈,但與美國的個人產品行業相比,Paranovus Entertainment Technology0.3倍的市盈率(或 “市盈率”)可能仍使它看起來像是買入,在美國,大約一半的公司的市盈率高於1.3倍,甚至市盈率高於4倍也很常見。但是,市盈率低可能是有原因的,需要進一步調查才能確定是否合理。
查看我們對 Paranovus 娛樂技術的最新分析
納斯達克證券交易所:PAVS與行業的比率對比 2023年8月28日
Paranovus娛樂技術公司最近的表現如何?
對於大多數公司來說,Paranovus Entertainment Technology在過去一年中實現的收入增長是完全可以接受的。一種可能性是市盈率很低,因爲投資者認爲這種可觀的收入增長在不久的將來實際上可能低於整個行業。那些看好Paranovus Entertainment Technology的人會希望情況並非如此,這樣他們就可以以較低的估值收購該股。
想全面了解公司的收益、收入和現金流嗎?然後我們的 免費的 關於Paranovus Entertainment Technology的報告將幫助你了解其歷史表現。
Paranovus娛樂科技的收入增長趨勢如何?
看到像Paranovus Entertainment Technology這樣低的市盈率唯一一次是該公司的增長有望落後於該行業。
回顧過去,該公司的收入增長了9.7%。令人高興的是,總收入也比三年前增長了51%,這在一定程度上要歸功於過去12個月的增長。因此,股東們肯定會歡迎這些中期收入增長率。
與該行業相比,該行業預計在未來12個月內僅實現6.6%的增長,根據最近的中期年化收入業績,該公司的勢頭更加強勁。
考慮到這一點,我們發現Paranovus Entertainment Technology的市盈率與業內同行相比沒有那麼高,這很有趣。看來大多數投資者並不相信該公司能夠維持其最近的增長率。
關鍵要點
儘管Paranovus Entertainment Technology最近股價攀升,但其市盈率仍落後於大多數其他公司。通常,在確定投資決策時,我們謹慎行事,不要過多地閱讀市售比率,儘管這可以充分揭示其他市場參與者對公司的看法。
我們非常驚訝地看到Paranovus Entertainment Technology目前的市盈率遠低於預期,因爲其最近三年的增長高於整個行業的預期。當我們看到強勁的收入增長超過該行業時,我們認爲公司的未來業績存在明顯的潛在風險,這給市盈率帶來了下行壓力。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有可能出現波動。
話雖如此,請注意 Paranovus 娛樂科技公司顯示了 5 個警告信號 在我們的投資分析中,其中4個有點令人擔憂。
如果這些 風險讓你重新考慮你對Paranovus娛樂技術的看法,瀏覽我們的高品質股票互動清單,了解還有什麼。
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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,也沒有考慮您的目標或財務狀況。我們的目標是爲您提供由基本面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公司公告或定性材料。簡而言之,華爾街在上述任何股票中都沒有頭寸。