LiveWire Group, Inc.'s (NYSE:LVWR) Share Price Matching Investor Opinion
LiveWire Group, Inc.'s (NYSE:LVWR) Share Price Matching Investor Opinion
With a price-to-sales (or "P/S") ratio of 47.5x LiveWire Group, Inc. (NYSE:LVWR) may be sending very bearish signals at the moment, given that almost half of all the Auto companies in the United States have P/S ratios under 4.1x and even P/S lower than 1.1x are not unusual. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's so lofty.
How Has LiveWire Group Performed Recently?
LiveWire Group could be doing better as its revenue has been going backwards lately while most other companies have been seeing positive revenue growth. Perhaps the market is expecting the poor revenue to reverse, justifying it's current high P/S.. However, if this isn't the case, investors might get caught out paying too much for the stock.
Keen to find out how analysts think LiveWire Group's future stacks up against the industry? In that case, our free report is a great place to start.What Are Revenue Growth Metrics Telling Us About The High P/S?
LiveWire Group's P/S ratio would be typical for a company that's expected to deliver very strong growth, and importantly, perform much better than the industry.
Retrospectively, the last year delivered a frustrating 19% decrease to the company's top line. This has soured the latest three-year period, which nevertheless managed to deliver a decent 23% overall rise in revenue. So we can start by confirming that the company has generally done a good job of growing revenue over that time, even though it had some hiccups along the way.
Turning to the outlook, the next year should generate growth of 450% as estimated by the one analyst watching the company. Meanwhile, the rest of the industry is forecast to only expand by 23%, which is noticeably less attractive.
With this in mind, it's not hard to understand why LiveWire Group's P/S is high relative to its industry peers. Apparently shareholders aren't keen to offload something that is potentially eyeing a more prosperous future.
The Bottom Line On LiveWire Group's P/S
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 look into LiveWire Group shows that its P/S ratio remains high on the merit of its strong future revenues. It appears that shareholders are confident in the company's future revenues, which is propping up the P/S. It's hard to see the share price falling strongly in the near future under these circumstances.
You should always think about risks. Case in point, we've spotted 1 warning sign for LiveWire Group you should be aware of.
If you're unsure about the strength of LiveWire Group's business, why not explore our interactive list of stocks with solid business fundamentals for some other companies you may have missed.
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.
由於市銷率(或 “市盈率”)爲47.5倍,LiveWire Group, Inc.(紐約證券交易所代碼:LVWR)目前可能會發出非常看跌的信號,因爲美國幾乎有一半的汽車公司的市盈率低於4.1倍,甚至市盈率低於1.1倍的情況並不少見。但是,僅按面值計算市銷率是不明智的,因爲可以解釋其爲何如此之高。
LiveWire Group 最近的表現如何?
LiveWire Group的表現可能會更好,因爲其收入最近一直在倒退,而大多數其他公司的收入卻出現了正增長。也許市場預計收入不佳的情況將逆轉,這證明了目前的高市銷率是合理的。但是,如果不是這樣,投資者可能會陷入爲股票支付過多費用的困境。
想了解分析師如何看待LiveWire Group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。收入增長指標告訴我們高市銷率有哪些?
LiveWire Group的市銷率對於一家預計將實現非常強勁的增長,而且重要的是,其表現要好於行業的公司來說是典型的。
回顧過去,去年該公司的收入下降了19%,令人沮喪。這使最近的三年期惡化,儘管如此,總收入仍實現了23%的可觀增長。因此,我們可以首先確認該公司在此期間在增加收入方面總體上做得很好,儘管在此過程中遇到了一些小問題。
談到前景,一位關注該公司的分析師估計,明年將實現450%的增長。同時,預計該行業的其餘部分將僅增長23%,其吸引力明顯降低。
考慮到這一點,不難理解爲什麼 LiveWire 集團的市銷率高於業內同行。顯然,股東們並不熱衷於轉移可能着眼於更繁榮未來的東西。
LiveWire 集團市銷率的底線
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LiveWire Group的調查表明,由於其未來收入強勁,其市銷率仍然很高。看來股東對公司的未來收入充滿信心,這支撐了市銷率。在這種情況下,很難看到股價在不久的將來會強勁下跌。
你應該時刻考慮風險。舉個例子,我們發現了你應該注意的LiveWire Group的1個警告信號。
如果您不確定LiveWire Group的業務實力,爲什麼不瀏覽我們的交互式股票清單,其中列出了一些您可能錯過的其他公司的業務基礎穩健的股票。
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。
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