U.S. Energy Corp. (NASDAQ:USEG) Stock Catapults 28% Though Its Price And Business Still Lag The Industry
U.S. Energy Corp. (NASDAQ:USEG) Stock Catapults 28% Though Its Price And Business Still Lag The Industry
U.S. Energy Corp. (NASDAQ:USEG) shares have had a really impressive month, gaining 28% after a shaky period beforehand. The bad news is that even after the stocks recovery in the last 30 days, shareholders are still underwater by about 8.8% over the last year.
Even after such a large jump in price, U.S. Energy's price-to-sales (or "P/S") ratio of 1.1x might still make it look like a buy right now compared to the Oil and Gas industry in the United States, where around half of the companies have P/S ratios above 2x and even P/S above 4x 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 limited.
How U.S. Energy Has Been Performing
Recent times haven't been great for U.S. Energy as its revenue has been falling quicker than most other companies. It seems that many are expecting the dismal revenue performance to persist, which has repressed the P/S. You'd much rather the company improve its revenue performance if you still believe in the business. If not, then existing shareholders will probably struggle to get excited about the future direction of the share price.
If you'd like to see what analysts are forecasting going forward, you should check out our free report on U.S. Energy.How Is U.S. Energy's Revenue Growth Trending?
The only time you'd be truly comfortable seeing a P/S as low as U.S. Energy's is when the company's growth is on track to lag the industry.
Retrospectively, the last year delivered a frustrating 27% decrease to the company's top line. The latest three year period has seen an incredible overall rise in revenue, a stark contrast to the last 12 months. So while the company has done a great job in the past, it's somewhat concerning to see revenue growth decline so harshly.
Looking ahead now, revenue is anticipated to climb by 2.2% during the coming year according to the one analyst following the company. With the industry predicted to deliver 5.1% growth, the company is positioned for a weaker revenue result.
With this information, we can see why U.S. Energy is trading at a P/S lower than the industry. It seems most investors are expecting to see limited future growth and are only willing to pay a reduced amount for the stock.
The Key Takeaway
The latest share price surge wasn't enough to lift U.S. Energy's P/S close to the industry median. 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.
As expected, our analysis of U.S. Energy's analyst forecasts confirms that the company's underwhelming revenue outlook is a major contributor to its low P/S. At this stage investors feel the potential for an improvement in revenue isn't great enough to justify a higher P/S ratio. The company will need a change of fortune to justify the P/S rising higher in the future.
Having said that, be aware U.S. Energy is showing 3 warning signs in our investment analysis, and 1 of those makes us a bit uncomfortable.
Of course, profitable companies with a history of great earnings growth are generally safer bets. So you may wish to see this free collection of other companies that have reasonable P/E ratios and have grown earnings strongly.
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.
美國能源公司(納斯達克股票代碼:USEG)的股價經歷了一個非常令人印象深刻的月份,在經歷了動盪時期之後上漲了28%。壞消息是,即使在過去30天股市回升之後,股東仍比去年下降了約8.8%。
即使在價格大幅上漲之後,與美國石油和天然氣行業相比,美國能源公司1.1倍的市銷率(或 “市盈率”)目前仍可能看起來像買入。在美國,大約一半的公司的市銷率高於2倍,甚至市盈率高於4倍也很常見。但是,僅按面值計算市銷率是不明智的,因爲可以解釋其有限的原因。
美國能源的表現如何
最近對美國能源公司來說並不好,因爲其收入的下降速度比大多數其他公司快。看來許多人預計慘淡的收入表現將持續下去,這抑制了市銷率。如果你仍然相信該業務,你寧願公司改善收入表現。如果不是,那麼現有股東可能很難對股價的未來走向感到興奮。
如果你想了解分析師對未來的預測,你應該查看我們的免費美國能源報告。美國能源的收入增長趨勢如何?
只有當公司的增長有望落後於該行業時,你才能真正放心地看到像美國能源一樣低的市銷率。
回顧過去,去年的公司收入下降了27%,令人沮喪。最近三年的總體收入增長令人難以置信,與過去12個月形成鮮明對比。因此,儘管該公司過去做得很好,但收入增長如此嚴重下降有些令人擔憂。
關注該公司的一位分析師表示,展望未來,來年收入預計將增長2.2%。預計該行業將實現5.1%的增長,該公司的收入業績將疲軟。
有了這些信息,我們可以了解爲何美國能源的市銷率低於該行業。看來大多數投資者預計未來增長有限,只願意爲股票支付較少的費用。
關鍵要點
最近的股價上漲不足以使美國能源公司的市銷率接近行業中位數。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。
正如預期的那樣,我們對美國能源分析師預測的分析證實,該公司糟糕的收入前景是其低市銷率的主要原因。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。該公司將需要改變命運,以證明未來市銷率上升是合理的。
話雖如此,請注意,美國能源在我們的投資分析中顯示出3個警告信號,其中一個讓我們有點不舒服。
當然,具有良好收益增長曆史的盈利公司通常是更安全的選擇。因此,您可能希望看到這些免費收集的市盈率合理且收益增長強勁的其他公司。
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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。
譯文內容由第三人軟體翻譯。
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