Investors Interested In Eversource Energy's (NYSE:ES) Revenues
Investors Interested In Eversource Energy's (NYSE:ES) Revenues
There wouldn't be many who think Eversource Energy's (NYSE:ES) price-to-sales (or "P/S") ratio of 1.7x is worth a mention when the median P/S for the Electric Utilities industry in the United States is similar at about 1.8x. While this might not raise any eyebrows, if the P/S ratio is not justified investors could be missing out on a potential opportunity or ignoring looming disappointment.
What Does Eversource Energy's Recent Performance Look Like?
Eversource Energy 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 market is expecting its poor revenue performance to improve, keeping the P/S from dropping. 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 Eversource Energy'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 P/S?
There's an inherent assumption that a company should be matching the industry for P/S ratios like Eversource Energy's to be considered reasonable.
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 3.1%. Even so, admirably revenue has lifted 34% in aggregate from three years ago, notwithstanding the last 12 months. Although it's been a bumpy ride, it's still fair to say the revenue growth recently has been more than adequate for the company.
Shifting to the future, estimates from the ten analysts covering the company suggest revenue should grow by 5.7% each year over the next three years. That's shaping up to be similar to the 4.1% each year growth forecast for the broader industry.
In light of this, it's understandable that Eversource Energy's P/S sits in line with the majority of other companies. It seems most investors are expecting to see average future growth and are only willing to pay a moderate amount for the stock.
What Does Eversource Energy's P/S Mean For Investors?
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.
We've seen that Eversource Energy maintains an adequate P/S seeing as its revenue growth figures match the rest of the industry. Right now shareholders are comfortable with the P/S as they are quite confident future revenue won't throw up any surprises. All things considered, if the P/S and revenue estimates contain no major shocks, then it's hard to see the share price moving strongly in either direction in the near future.
Before you settle on your opinion, we've discovered 2 warning signs for Eversource Energy that you should be aware of.
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.
當美國電力公用事業行業的市盈率中位數相似,約爲1.8倍時,不會有多少人認爲Eversource Energy(紐約證券交易所代碼:ES)的1.7倍市銷率(或 “市盈率”)值得一提。儘管這可能不會引起任何關注,但如果市銷率不合理,投資者可能會錯過潛在的機會或無視迫在眉睫的失望情緒。
Eversource Energy最近的表現如何?
Eversource Energy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。也許市場預計其糟糕的收入表現將有所改善,從而防止市銷率下降。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Eversource Energy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有關市銷率的哪些信息?
人們固有的假設是,公司應該與行業相提並論,這樣像Eversource Energy這樣的市銷率才算合理。
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3.1%的跌幅。即便如此,儘管過去12個月,但總收入仍比三年前增長了34%,令人欽佩。儘管這是一個坎坷的旅程,但可以公平地說,最近的收入增長對公司來說已經足夠了。
展望未來,負責該公司的十位分析師的估計表明,未來三年收入每年將增長5.7%。這將與整個行業每年4.1%的增長預測相似。
有鑑於此,可以理解Eversource Energy的市銷率與其他大多數公司持平。看來大多數投資者都期望未來的平均增長,只願意爲股票支付適度的費用。
Eversource Energy的市銷率對投資者意味着什麼?
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。
我們已經看到,Eversource Energy保持了足夠的市銷率,因爲其收入增長數據與行業其他部門相當。目前,股東們對市銷率感到滿意,因爲他們非常有信心未來的收入不會帶來任何意外。綜合考慮,如果市銷率和收入估計不包含重大沖擊,那麼很難看到股價在不久的將來雙向強勁走勢。
在你確定自己的觀點之前,我們已經發現了Eversource Energy的兩個警告信號,你應該注意這些信號。
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。
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