Some Confidence Is Lacking In Paltalk, Inc. (NASDAQ:PALT) As Shares Slide 39%
Some Confidence Is Lacking In Paltalk, Inc. (NASDAQ:PALT) As Shares Slide 39%
Paltalk, Inc. (NASDAQ:PALT) shares have retraced a considerable 39% in the last month, reversing a fair amount of their solid recent performance. Looking at the bigger picture, even after this poor month the stock is up 57% in the last year.
Even after such a large drop in price, it's still not a stretch to say that Paltalk's price-to-sales (or "P/S") ratio of 2.3x right now seems quite "middle-of-the-road" compared to the Interactive Media and Services industry in the United States, where the median P/S ratio is around 1.8x. Although, it's not wise to simply ignore the P/S without explanation as investors may be disregarding a distinct opportunity or a costly mistake.
How Paltalk Has Been Performing
Paltalk could be doing better as its revenue has been going backwards lately while most other companies have been seeing positive revenue growth. It might be that many expect the dour revenue performance to strengthen positively, which has kept the P/S from falling. You'd really hope so, otherwise you're paying a relatively elevated price for a company with this sort of growth profile.
If you'd like to see what analysts are forecasting going forward, you should check out our free report on Paltalk.What Are Revenue Growth Metrics Telling Us About The P/S?
The only time you'd be comfortable seeing a P/S like Paltalk's is when the company's growth is tracking the industry closely.
Taking a look back first, we see that there was hardly any revenue growth to speak of for the company over the past year. Whilst it's an improvement, it wasn't enough to get the company out of the hole it was in, with revenue down 14% overall from three years ago. So unfortunately, we have to acknowledge that the company has not done a great job of growing revenue over that time.
Looking ahead now, revenue is anticipated to climb by 2.6% during the coming year according to the sole analyst following the company. Meanwhile, the rest of the industry is forecast to expand by 14%, which is noticeably more attractive.
With this in mind, we find it intriguing that Paltalk's P/S is closely matching its industry peers. Apparently many investors in the company are less bearish than analysts indicate and aren't willing to let go of their stock right now. Maintaining these prices will be difficult to achieve as this level of revenue growth is likely to weigh down the shares eventually.
The Final Word
Following Paltalk's share price tumble, its P/S is just clinging on to the industry median P/S. We'd say the price-to-sales ratio's power isn't primarily as a valuation instrument but rather to gauge current investor sentiment and future expectations.
Given that Paltalk's revenue growth projections are relatively subdued in comparison to the wider industry, it comes as a surprise to see it trading at its current P/S ratio. At present, we aren't confident in the P/S as the predicted future revenues aren't likely to support a more positive sentiment for long. Circumstances like this present a risk to current and prospective investors who may see share prices fall if the low revenue growth impacts the sentiment.
Before you settle on your opinion, we've discovered 2 warning signs for Paltalk (1 makes us a bit uncomfortable!) that you should be aware of.
If these risks are making you reconsider your opinion on Paltalk, explore our interactive list of high quality stocks to get an idea of what else is out there.
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.
Paltalk, Inc.(納斯達克股票代碼:PALT)的股價在上個月大幅回落了39%,扭轉了近期的穩健表現。從大局來看,即使在經歷了這個糟糕的月份之後,該股去年仍上漲了57%。
即使在價格大幅下跌之後,與美國互動媒體和服務行業相比,Paltalk目前2.3倍的市銷率(或 “市盈率”)似乎相當 “中間路線”,可以毫不誇張地說,Paltalk的市銷率中位數約爲1.8倍。但是,不加解釋地忽略市銷率是不明智的,因爲投資者可能會忽視一個明顯的機會或一個代價高昂的錯誤。
Paltalk 的表現如何
Paltalk可能會做得更好,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。許多人可能預計,糟糕的收入表現將積極增強,這使市銷售率沒有下降。你真的希望如此,否則你會爲一傢俱有這種增長概況的公司付出相對較高的代價。
如果你想了解分析師對未來的預測,你應該查看我們關於Paltalk的免費報告。收入增長指標告訴我們有關市銷率的哪些信息?
你唯一能放心地看到像Paltalk這樣的市銷率的時候是公司的增長密切關注行業的時候。
首先回顧一下,我們發現該公司在過去的一年中幾乎沒有任何收入增長可言。儘管這是一種改進,但這還不足以使公司擺脫困境,總體收入比三年前下降了14%。因此,不幸的是,我們必須承認,在這段時間內,該公司在增加收入方面做得不好。
根據關注該公司的唯一分析師的說法,展望未來,來年收入預計將增長2.6%。同時,該行業的其他部門預計將增長14%,這明顯更具吸引力。
考慮到這一點,我們發現有趣的是,Paltalk的市銷率與業內同行非常接近。顯然,該公司的許多投資者沒有分析師所表示的那麼看跌,並且不願意立即放棄股票。維持這些價格將很難實現,因爲這種收入增長水平最終可能會壓低股價。
最後一句話
在Paltalk股價暴跌之後,其市盈率僅次於行業中位數。我們可以說,市銷比率的力量主要不是作爲估值工具,而是衡量當前投資者情緒和未來預期。
鑑於與整個行業相比,Paltalk的收入增長預測相對疲軟,看到其目前的市銷率交易令人驚訝。目前,我們對市銷率沒有信心,因爲預期的未來收入不太可能長期支撐更積極的情緒。像這樣的情況給當前和潛在的投資者帶來了風險,如果低收入增長影響市場情緒,他們可能會看到股價下跌。
在你確定自己的意見之前,我們已經發現了 Paltalk 的 2 個警告信號(1 個讓我們有點不舒服!)你應該注意的。
如果這些風險讓你重新考慮你對Paltalk的看法,請瀏覽我們的高質量股票互動清單,了解還有什麼。
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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