Some Shareholders Feeling Restless Over Dollar Tree, Inc.'s (NASDAQ:DLTR) P/S Ratio
Some Shareholders Feeling Restless Over Dollar Tree, Inc.'s (NASDAQ:DLTR) P/S Ratio
Dollar Tree, Inc.'s (NASDAQ:DLTR) price-to-sales (or "P/S") ratio of 0.9x may not look like an appealing investment opportunity when you consider close to half the companies in the Consumer Retailing industry in the United States have P/S ratios below 0.4x. However, the P/S might be high for a reason and it requires further investigation to determine if it's justified.
What Does Dollar Tree's P/S Mean For Shareholders?
Recent times have been advantageous for Dollar Tree as its revenues have been rising faster than most other companies. The P/S is probably high because investors think this strong revenue performance will continue. 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 Dollar Tree's future stacks up against the industry? In that case, our free report is a great place to start.Is There Enough Revenue Growth Forecasted For Dollar Tree?
In order to justify its P/S ratio, Dollar Tree would need to produce impressive growth in excess of the industry.
Retrospectively, the last year delivered a decent 7.9% gain to the company's revenues. The latest three year period has also seen a 20% overall rise in revenue, aided somewhat by its short-term performance. Accordingly, shareholders would have probably been satisfied with the medium-term rates of revenue growth.
Shifting to the future, estimates from the analysts covering the company suggest revenue should grow by 4.9% per annum over the next three years. With the industry predicted to deliver 4.7% growth per year, the company is positioned for a comparable revenue result.
With this information, we find it interesting that Dollar Tree is trading at a high P/S compared to the industry. Apparently many investors in the company are more bullish than analysts indicate and aren't willing to let go of their stock right now. These shareholders may be setting themselves up for disappointment if the P/S falls to levels more in line with the growth outlook.
What Does Dollar Tree's P/S Mean For Investors?
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.
Given Dollar Tree's future revenue forecasts are in line with the wider industry, the fact that it trades at an elevated P/S is somewhat surprising. When we see revenue growth that just matches the industry, we don't expect elevates P/S figures to remain inflated for the long-term. Unless the company can jump ahead of the rest of the industry in the short-term, it'll be a challenge to maintain the share price at current levels.
The company's balance sheet is another key area for risk analysis. Our free balance sheet analysis for Dollar Tree with six simple checks will allow you to discover any risks that could be an issue.
If companies with solid past earnings growth is up your alley, you may wish to see this free collection of other companies with strong earnings growth and low P/E ratios.
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.
Dollar Tree, Inc.(納斯達克股票代碼:DLTR)的市銷率(或稱 "P/S")爲0.9倍,如果考慮到美國消費零售行業近一半公司的市銷率都低於0.4倍,這看起來可能並不是一個吸引人的投資機會。但是,市銷率之高可能是有原因的,需要進一步調查以確定其是否合理。
納斯達克GS: DLTR 與行業的股價銷售比率 2024 年 3 月 28 日
Dollar Tree的市銷率對股東意味着什麼?
最近對Dollar Tree來說是有利的,因爲其收入的增長速度快於大多數其他公司。市銷率可能很高,因爲投資者認爲這種強勁的收入表現將繼續下去。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Dollar Tree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。
預計Dollar Tree的收入增長是否足夠?
爲了證明其市銷率是合理的,Dollar Tree需要實現超過該行業的驚人增長。
回顧過去,去年的公司收入實現了7.9%的可觀增長。在最近三年中,收入總體增長了20%,這在一定程度上得益於其短期表現。因此,股東可能會對中期收入增長率感到滿意。
展望未來,報道該公司的分析師的估計表明,未來三年收入將每年增長4.9%。預計該行業每年將實現4.7%的增長,該公司有望實現可比的收入業績。
有了這些信息,我們發現有趣的是,與行業相比,Dollar Tree的市銷率很高。顯然,該公司的許多投資者比分析師所表示的更爲看漲,並且不願意立即放棄股票。如果市銷率降至更符合增長前景的水平,這些股東可能會爲失望做好準備。
Dollar Tree的市銷率對投資者意味着什麼?
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。
鑑於Dollar Tree的未來收入預測與整個行業一致,其市銷率較高這一事實有些令人驚訝。當我們看到收入增長與行業相匹配時,我們預計上調的市銷售率不會長期保持膨脹。除非該公司能夠在短期內領先於其他行業,否則將股價維持在當前水平將是一項挑戰。
該公司的資產負債表是風險分析的另一個關鍵領域。我們對Dollar Tree的免費資產負債表分析包括六張簡單的支票,將使您發現任何可能存在問題的風險。
如果過去盈利增長穩健的公司處於困境,那麼你可能希望看到這些盈利增長強勁、市盈率低的其他公司的免費集合。
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。
風險及免責聲明
- 分享到weixin
- 分享到qq
- 分享到facebook
- 分享到twitter
- 分享到微博
- 粘贴板
使用瀏覽器的分享功能,分享給你的好友吧