Improved Revenues Required Before 9F Inc. (NASDAQ:JFU) Stock's 26% Jump Looks Justified
Improved Revenues Required Before 9F Inc. (NASDAQ:JFU) Stock's 26% Jump Looks Justified
9F Inc. (NASDAQ:JFU) shareholders are no doubt pleased to see that the share price has bounced 26% in the last month, although it is still struggling to make up recently lost ground. The last month tops off a massive increase of 121% in the last year.
Even after such a large jump in price, 9F may still be sending buy signals at present with its price-to-sales (or "P/S") ratio of 0.6x, considering almost half of all companies in the Interactive Media and Services industry in the United States have P/S ratios greater than 1.7x and even P/S higher than 5x aren't out of the ordinary. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the reduced P/S.
What Does 9F's Recent Performance Look Like?
For instance, 9F's receding revenue in recent times would have to be some food for thought. One possibility is that the P/S is low because investors think the company won't do enough to avoid underperforming the broader industry in the near future. Those who are bullish on 9F will be hoping that this isn't the case so that they can pick up the stock at a lower valuation.
We don't have analyst forecasts, but you can see how recent trends are setting up the company for the future by checking out our free report on 9F's earnings, revenue and cash flow.Is There Any Revenue Growth Forecasted For 9F?
The only time you'd be truly comfortable seeing a P/S as low as 9F's is when the company's growth is on track to lag the industry.
Retrospectively, the last year delivered a frustrating 29% decrease to the company's top line. This means it has also seen a slide in revenue over the longer-term as revenue is down 84% in total over the last three years. Therefore, it's fair to say the revenue growth recently has been undesirable for the company.
Comparing that to the industry, which is predicted to deliver 14% growth in the next 12 months, the company's downward momentum based on recent medium-term revenue results is a sobering picture.
With this in mind, we understand why 9F's P/S is lower than most of its industry peers. Nonetheless, there's no guarantee the P/S has reached a floor yet with revenue going in reverse. Even just maintaining these prices could be difficult to achieve as recent revenue trends are already weighing down the shares.
The Bottom Line On 9F's P/S
The latest share price surge wasn't enough to lift 9F's P/S close to the industry median. It's argued the price-to-sales ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator.
Our examination of 9F confirms that the company's shrinking revenue over the past medium-term is a key factor in its low price-to-sales ratio, given the industry is projected to grow. At this stage investors feel the potential for an improvement in revenue isn't great enough to justify a higher P/S ratio. If recent medium-term revenue trends continue, it's hard to see the share price moving strongly in either direction in the near future under these circumstances.
It is also worth noting that we have found 3 warning signs for 9F (1 is a bit concerning!) that you need to take into consideration.
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.
9F Inc.(納斯達克股票代碼:JFU)的股東們無疑高興地看到股價在上個月反彈了26%,儘管它仍在努力彌補最近的跌勢。上個月以去年121%的大幅增長告終。
即使在價格大幅上漲之後,9F目前可能仍在發出買入信號,其市銷率(或 “市盈率”)爲0.6倍,因爲美國互動媒體和服務行業幾乎有一半的公司的市銷率大於1.7倍,即使市盈率高於5倍也並非不尋常。但是,我們需要更深入地挖掘以確定降低市銷率是否有合理的依據。
9F 最近的表現是什麼樣子?
例如,9F最近收入的下降值得深思。一種可能性是市銷率很低,因爲投資者認爲公司在不久的將來在避免整個行業表現不佳方面做得還不夠。那些看漲9F的人會希望情況並非如此,這樣他們就可以以較低的估值買入該股。
我們沒有分析師的預測,但您可以查看我們關於9F收益、收入和現金流的免費報告,了解最近的趨勢如何爲公司未來做好準備。預計9F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市銷率低至9華氏度。
回顧過去,去年的公司收入下降了29%,令人沮喪。這意味着從長遠來看,其收入也出現了下滑,因爲在過去三年中,總收入下降了84%。因此,可以公平地說,最近的收入增長對公司來說是不可取的。
相比之下,該行業預計將在未來12個月內實現14%的增長,根據最近的中期收入業績,該公司的下滑勢頭令人震驚。
考慮到這一點,我們理解了爲何9F的市銷率低於大部分行業同行。但是,尚不能保證市銷率已達到最低水平,收入反向增長。即使僅僅維持這些價格也可能難以實現,因爲最近的收入趨勢已經壓低了股價。
9F 市銷率的底線
最近的股價上漲不足以使9F的市銷率接近行業中位數。有人認爲,在某些行業中,市銷率是衡量價值的較差指標,但它可以是一個有力的商業信心指標。
我們對9F的審查證實,鑑於該行業預計將增長,該公司在過去的中期收入萎縮是其低市銷率的關鍵因素。在現階段,投資者認爲,收入改善的可能性不足以證明更高的市銷率是合理的。如果最近的中期收入趨勢繼續下去,在這種情況下,很難看到股價在不久的將來雙向強勁走勢。
還值得注意的是,我們發現了 3 個 9F 的警告標誌(1 個有點令人擔憂!)這是你需要考慮的。
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。
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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