Unfortunately for some shareholders, the BIT Mining Limited (NYSE:BTCM) share price has dived 26% in the last thirty days, prolonging recent pain. Still, a bad month hasn't completely ruined the past year with the stock gaining 29%, which is great even in a bull market.
Following the heavy fall in price, BIT Mining's price-to-sales (or "P/S") ratio of 0.8x might make it look like a strong buy right now compared to the wider Software industry in the United States, where around half of the companies have P/S ratios above 4.4x and even P/S above 11x are quite common. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's so limited.
NYSE:BTCM Price to Sales Ratio vs Industry March 21st 2024
What Does BIT Mining's P/S Mean For Shareholders?
BIT Mining hasn't been tracking well recently as its declining revenue compares poorly to other companies, which have seen some growth in their revenues on average. Perhaps the P/S remains low as investors think the prospects of strong revenue growth aren't on the horizon. If this is the case, then existing shareholders will probably struggle to get excited about the future direction of the share price.
Keen to find out how analysts think BIT Mining's future stacks up against the industry? In that case, our free report is a great place to start.
How Is BIT Mining's Revenue Growth Trending?
BIT Mining's P/S ratio would be typical for a company that's expected to deliver very poor growth or even falling revenue, and importantly, perform much worse than 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 93%. In spite of this, the company still managed to deliver immense revenue growth over the last three years. Therefore, it's fair to say the revenue growth recently has been superb for the company, but investors will want to ask why it is now in decline.
Shifting to the future, estimates from the lone analyst covering the company suggest revenue should grow by 32% over the next year. With the industry only predicted to deliver 15%, the company is positioned for a stronger revenue result.
In light of this, it's peculiar that BIT Mining's P/S sits below the majority of other companies. Apparently some shareholders are doubtful of the forecasts and have been accepting significantly lower selling prices.
The Bottom Line On BIT Mining's P/S
Having almost fallen off a cliff, BIT Mining's share price has pulled its P/S way down as well. Generally, our preference is to limit the use of the price-to-sales ratio to establishing what the market thinks about the overall health of a company.
To us, it seems BIT Mining currently trades on a significantly depressed P/S given its forecasted revenue growth is higher than the rest of its industry. There could be some major risk factors that are placing downward pressure on the P/S ratio. While the possibility of the share price plunging seems unlikely due to the high growth forecasted for the company, the market does appear to have some hesitation.
It's always necessary to consider the ever-present spectre of investment risk. We've identified 5 warning signs with BIT Mining (at least 2 which can't be ignored), and understanding them should be part of your investment process.
If strong companies turning a profit tickle your fancy, then you'll want to check out this free list of interesting companies that trade on a low P/E (but have proven they can grow earnings).
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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.
不幸的是，對於一些股東來說，BIT Mining Limited（紐約證券交易所股票代碼：BTCM）的股價在過去 30 天內下跌了 26%，延續了近期的痛苦。儘管如此，糟糕的月份並沒有完全毀掉過去的一年，該股上漲了29％，即使在牛市中也是不錯的。
在價格大幅下跌之後，與美國整個軟件行業相比，BIT Mining的0.8倍市銷率（或 “市銷率”）可能使其看起來像是一個強勁的買盤，在美國，大約一半的公司的市銷率高於4.4倍，甚至市盈率高於11倍也很常見。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有限。
紐約證券交易所：BTCM與行業的股價銷售比率2024年3月21日
BIT Mining的市銷率對股東意味着什麼？
BIT Mining最近表現不佳，其收入下降與其他公司相比表現不佳，後者的平均收入有所增長。也許市銷率仍然很低，因爲投資者認爲強勁收入增長的前景尚未到來。如果是這樣的話，那麼現有股東可能很難對股價的未來走向感到興奮。
想了解分析師如何看待BIT Mining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。
BIT Mining的收入增長趨勢如何？
對於一家預計增長非常糟糕甚至收入下降的公司，BIT Mining的市銷率是典型的，而且重要的是，其表現要比該行業差得多。
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93％的跌幅。儘管如此，該公司在過去三年中仍然設法實現了巨大的收入增長。因此，可以公平地說，該公司最近的收入增長非常出色，但投資者會想問一下爲什麼收入現在呈下降趨勢。
展望未來，報道該公司的唯一分析師的估計表明，明年收入將增長32％。由於預計該行業的收入僅爲15％，該公司有望實現更強勁的收入業績。
有鑑於此，奇怪的是，BIT Mining的市銷率低於其他多數公司。顯然，一些股東對預測持懷疑態度，並一直在接受大幅降低的銷售價格。
BIT Mining 市銷率的底線
在幾乎跌下懸崖之後，BIT Mining的股價也大幅下調了市銷率。通常，我們傾向於限制使用市銷率來確定市場對公司整體健康狀況的看法。
在我們看來，鑑於其預測的收入增長高於該行業的其他部門，BIT Mining目前的市銷率似乎嚴重低迷。可能有一些主要的風險因素給市銷率帶來下行壓力。儘管由於預計該公司將實現高增長，股價暴跌的可能性似乎不大，但市場似乎確實有些猶豫。
始終有必要考慮永遠存在的投資風險幽靈。我們已經確定了BIT Mining的5個警告信號（至少有2個不容忽視），了解它們應該是您投資過程的一部分。
如果你喜歡實力雄厚的公司盈利，那麼你會想看看這份以低市盈率（但已證明可以增加收益）的有趣公司的免費名單。
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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。
