Revenues Working Against MultiPlan Corporation's (NYSE:MPLN) Share Price Following 41% Dive
Revenues Working Against MultiPlan Corporation's (NYSE:MPLN) Share Price Following 41% Dive
Unfortunately for some shareholders, the MultiPlan Corporation (NYSE:MPLN) share price has dived 41% in the last thirty days, prolonging recent pain. Instead of being rewarded, shareholders who have already held through the last twelve months are now sitting on a 33% share price drop.
Since its price has dipped substantially, it would be understandable if you think MultiPlan is a stock with good investment prospects with a price-to-sales ratios (or "P/S") of 0.5x, considering almost half the companies in the United States' Healthcare Services industry have P/S ratios above 2.3x. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's limited.
How Has MultiPlan Performed Recently?
MultiPlan could be doing better as its revenue has been going backwards lately while most other companies have been seeing positive revenue growth. It seems that many are expecting the poor revenue performance to persist, which has repressed the P/S ratio. So while you could say the stock is cheap, investors will be looking for improvement before they see it as good value.
If you'd like to see what analysts are forecasting going forward, you should check out our free report on MultiPlan.Is There Any Revenue Growth Forecasted For MultiPlan?
The only time you'd be truly comfortable seeing a P/S as low as MultiPlan'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 11%. Unfortunately, that's brought it right back to where it started three years ago with revenue growth being virtually non-existent overall during that time. Accordingly, shareholders probably wouldn't have been overly satisfied with the unstable medium-term growth rates.
Shifting to the future, estimates from the one analyst covering the company suggest revenue should grow by 6.5% per year over the next three years. With the industry predicted to deliver 13% growth per year, the company is positioned for a weaker revenue result.
With this in consideration, its clear as to why MultiPlan's P/S is falling short industry peers. Apparently many shareholders weren't comfortable holding on while the company is potentially eyeing a less prosperous future.
The Key Takeaway
MultiPlan's recently weak share price has pulled its P/S back below other Healthcare Services companies. Using the price-to-sales ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects.
As expected, our analysis of MultiPlan's analyst forecasts confirms that the company's underwhelming revenue outlook is a major contributor to its low P/S. Right now shareholders are accepting the low P/S as they concede future revenue probably won't provide any pleasant surprises. It's hard to see the share price rising strongly in the near future under these circumstances.
You need to take note of risks, for example - MultiPlan has 3 warning signs (and 1 which shouldn't be ignored) we think you should know about.
Of course, profitable companies with a history of great earnings growth are generally safer bets. So you may wish to see this free collection of other companies that have reasonable P/E ratios and have grown earnings strongly.
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.
對於一些股東來說,不幸的是,MultiPlan Corporation(紐約證券交易所代碼:MPLN)的股價在過去三十天中下跌了41%,延續了最近的痛苦。在過去十二個月中已經持股的股東沒有獲得回報,反而坐視股價下跌了33%。
由於其價格已大幅下跌,考慮到美國醫療服務行業中將近一半的公司的市盈率高於2.3倍,你認爲MultiPlan是一隻具有良好投資前景的股票,其市銷率(或 “市盈率”)爲0.5倍,這是可以理解的。但是,僅按面值計算市銷率是不明智的,因爲可以解釋其有限的原因。
MultiPlan 最近的表現如何?
MultiPlan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。看來許多人預計糟糕的收入表現將持續下去,這抑制了市銷率。因此,儘管你可以說股票很便宜,但投資者在將其視爲物有所值之前會尋求改善。
如果你想了解分析師對未來的預測,你應該查看我們關於MultiPlan的免費報告。預計MultiPlan的收入會增長嗎?
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MultiPlan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11%的跌幅。不幸的是,這使它回到了三年前的起點,當時總體收入幾乎沒有增長。因此,股東們可能不會對不穩定的中期增長率過於滿意。
展望未來,一位報道該公司的分析師的估計表明,未來三年收入每年將增長6.5%。預計該行業每年將實現13%的增長,因此該公司的收入業績將疲軟。
考慮到這一點,MultiPlan的市銷率爲何低於業內同行就顯而易見了。顯然,許多股東不願堅持下去,而該公司可能正在考慮不那麼繁榮的未來。
關鍵要點
MultiPlan最近疲軟的股價使其市銷率回落至其他醫療服務公司的下方。僅使用市銷率來確定是否應該出售股票是不明智的,但它可以作爲公司未來前景的實用指南。
正如預期的那樣,我們對MultiPlan分析師預測的分析證實,該公司令人難以置信的收入前景是其低市銷率的主要原因。目前,股東們正在接受低市銷售率,因爲他們承認未來的收入可能不會帶來任何驚喜。在這種情況下,很難看到股價在不久的將來強勁上漲。
例如,您需要注意風險-MultiPlan 有 3 個警告標誌(以及 1 個不容忽視的),我們認爲您應該知道。
當然,具有良好收益增長曆史的盈利公司通常是更安全的選擇。因此,您可能希望看到這些免費收集的市盈率合理且收益增長強勁的其他公司。
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。
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