Future FinTech Group Inc. (NASDAQ:FTFT) Soars 29% But It's A Story Of Risk Vs Reward
Future FinTech Group Inc. (NASDAQ:FTFT) Soars 29% But It's A Story Of Risk Vs Reward
Despite an already strong run, Future FinTech Group Inc. (NASDAQ:FTFT) shares have been powering on, with a gain of 29% in the last thirty days. Not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 32% in the last twelve months.
Even after such a large jump in price, Future FinTech Group may still be sending buy signals at present with its price-to-sales (or "P/S") ratio of 0.7x, considering almost half of all companies in the Diversified Financial industry in the United States have P/S ratios greater than 2.5x and even P/S higher than 5x aren't out of the ordinary. However, the P/S might be low for a reason and it requires further investigation to determine if it's justified.
What Does Future FinTech Group's P/S Mean For Shareholders?
For instance, Future FinTech Group's receding revenue in recent times would have to be some food for thought. It might be that many expect the disappointing revenue performance to continue or accelerate, which has repressed the P/S. 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.
Want the full picture on earnings, revenue and cash flow for the company? Then our free report on Future FinTech Group will help you shine a light on its historical performance.Do Revenue Forecasts Match The Low P/S Ratio?
The only time you'd be truly comfortable seeing a P/S as low as Future FinTech Group's is when the company's growth is on track to lag the industry.
Taking a look back first, the company's revenue growth last year wasn't something to get excited about as it posted a disappointing decline of 9.6%. The latest three year period has seen an incredible overall rise in revenue, a stark contrast to the last 12 months. Accordingly, shareholders will be pleased, but also have some serious questions to ponder about the last 12 months.
Comparing that recent medium-term revenue trajectory with the industry's one-year growth forecast of 1.3% shows it's noticeably more attractive.
With this information, we find it odd that Future FinTech Group is trading at a P/S lower than the industry. Apparently some shareholders believe the recent performance has exceeded its limits and have been accepting significantly lower selling prices.
What We Can Learn From Future FinTech Group's P/S?
Despite Future FinTech Group'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.
Our examination of Future FinTech Group 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 strong revenue with faster-than-industry growth, we assume there are some significant underlying risks to the company's ability to make money which is applying downwards pressure on the P/S ratio. It appears many are indeed anticipating revenue instability, because the persistence of these recent medium-term conditions would normally provide a boost to the share price.
Plus, you should also learn about these 3 warning signs we've spotted with Future FinTech Group (including 1 which is significant).
It's important to make sure you look for a great company, not just the first idea you come across. So if growing profitability aligns with your idea of a great company, take a peek at this free list of interesting companies with strong recent earnings growth (and a low P/E).
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.
儘管已經表現強勁,但未來金融科技集團公司(納斯達克股票代碼:FTFT)的股價一直在上漲,在過去三十天中上漲了29%。並非所有股東都會感到歡欣鼓舞,因爲股價在過去十二個月中仍然下跌了32%,非常令人失望。
即使在價格大幅上漲之後,未來金融科技集團目前可能仍在發出買入信號,其市銷率(或 “市盈率”)爲0.7倍,因爲美國多元化金融行業中幾乎有一半的公司的市盈率超過2.5倍,即使市盈率高於5倍也並非不尋常。但是,市銷率低可能是有原因的,需要進一步調查以確定其是否合理。
未來金融科技集團的市銷率對股東意味着什麼?
例如,未來金融科技集團最近收入的下降值得深思。許多人可能預計,令人失望的收入表現將持續或加速,這抑制了市銷率。如果你喜歡這家公司,你會希望情況並非如此,這樣你就有可能在股票失寵的時候買入一些股票。
想全面了解公司的收益、收入和現金流嗎?然後,我們關於未來金融科技集團的免費報告將幫助您了解其歷史表現。收入預測是否與低市盈率相符?
只有當公司的增長有望落後於行業時,你才能真正放心地看到像未來金融科技集團一樣低的市銷率。
首先回顧一下,該公司去年的收入增長並不令人興奮,因爲它公佈了令人失望的9.6%的跌幅。最近三年的總體收入增長令人難以置信,與過去12個月形成鮮明對比。因此,股東們會很高興,但在過去的12個月中也有一些嚴肅的問題需要考慮。
將最近的中期收入軌跡與該行業1.3%的年度增長預測進行比較,可以看出該行業明顯更具吸引力。
有了這些信息,我們覺得奇怪的是,未來金融科技集團的市銷售率低於該行業。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。
我們可以從未來金融科技集團的市盈率中學到什麼?
儘管未來金融科技集團的股價最近攀升,但其市銷率仍然落後於大多數其他公司。通常,在做出投資決策時,我們謹慎行事,不要過多地考慮市售比率,儘管這可以揭示其他市場參與者對公司的看法。
我們對未來金融科技集團的調查顯示,鑑於其三年收入趨勢看起來好於當前的行業預期,其市銷率增長幅度沒有我們預期的那麼大。當我們看到強勁的收入和比行業更快的增長速度時,我們假設公司的盈利能力存在一些重大的潛在風險,這給市銷率帶來了下行壓力。看來許多人確實在預測收入不穩定,因爲近期這些中期狀況的持續下去通常會提振股價。
此外,您還應該了解我們在未來金融科技集團發現的這三個警告信號(包括一個重要的警告信號)。
重要的是要確保你尋找一家優秀的公司,而不僅僅是你遇到的第一個想法。因此,如果盈利能力的增長與你對一家優秀公司的想法一致,那就來看看這份免費名單吧,列出了最近收益增長強勁(市盈率低)的有趣公司。
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