Adaptive Biotechnologies Corporation (NASDAQ:ADPT) Stock's 33% Dive Might Signal An Opportunity But It Requires Some Scrutiny
Adaptive Biotechnologies Corporation (NASDAQ:ADPT) Stock's 33% Dive Might Signal An Opportunity But It Requires Some Scrutiny
To the annoyance of some shareholders, Adaptive Biotechnologies Corporation (NASDAQ:ADPT) shares are down a considerable 33% in the last month, which continues a horrid run for the company. The recent drop completes a disastrous twelve months for shareholders, who are sitting on a 68% loss during that time.
Since its price has dipped substantially, Adaptive Biotechnologies' price-to-sales (or "P/S") ratio of 2.3x might make it look like a buy right now compared to the Life Sciences industry in the United States, where around half of the companies have P/S ratios above 3.9x and even P/S above 7x 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.
NasdaqGS:ADPT Price to Sales Ratio vs Industry April 4th 2024
What Does Adaptive Biotechnologies' Recent Performance Look Like?
Recent times haven't been great for Adaptive Biotechnologies as its revenue has been falling quicker than most other companies. The P/S ratio is probably low because investors think this poor revenue performance isn't going to improve at all. 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.
Keen to find out how analysts think Adaptive Biotechnologies' future stacks up against the industry? In that case, our free report is a great place to start.
Do Revenue Forecasts Match The Low P/S Ratio?
In order to justify its P/S ratio, Adaptive Biotechnologies would need to produce sluggish growth that's trailing the industry.
Retrospectively, the last year delivered a frustrating 8.1% decrease to the company's top line. However, a few very strong years before that means that it was still able to grow revenue by an impressive 73% in total over the last three years. 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.
Turning to the outlook, the next three years should generate growth of 19% each year as estimated by the eight analysts watching the company. With the industry only predicted to deliver 6.4% each year, the company is positioned for a stronger revenue result.
With this information, we find it odd that Adaptive Biotechnologies is trading at a P/S lower than the industry. Apparently some shareholders are doubtful of the forecasts and have been accepting significantly lower selling prices.
The Final Word
Adaptive Biotechnologies' recently weak share price has pulled its P/S back below other Life Sciences companies. While the price-to-sales ratio shouldn't be the defining factor in whether you buy a stock or not, it's quite a capable barometer of revenue expectations.
Adaptive Biotechnologies' analyst forecasts revealed that its superior revenue outlook isn't contributing to its P/S anywhere near as much as we would have predicted. 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.
Before you take the next step, you should know about the 2 warning signs for Adaptive Biotechnologies that we have uncovered.
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.
令一些股東煩惱的是,自適應生物技術公司(納斯達克股票代碼:ADPT)的股價在上個月下跌了33%,這延續了該公司的糟糕表現。對於股東來說,最近的下跌結束了災難性的十二個月,在此期間,股東虧損了68%。
由於其價格大幅下跌,與美國的生命科學行業相比,Adaptive Biotechnologies的2.3倍市銷率(或 “市盈率”)可能使其目前看起來像買入,在美國,大約一半的公司的市銷率高於3.9倍,甚至市盈率高於7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。
納斯達克GS:ADPT與行業的股價銷售比率2024年4月4日
自適應生物技術最近的表現如何?
最近對自適應生物技術公司來說並不是一件好事,因爲其收入的下降速度比大多數其他公司快。市銷率可能很低,因爲投資者認爲這種糟糕的收入表現根本不會改善。如果你仍然相信該業務,你更希望公司改善其收入表現。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。
想了解分析師如何看待自適應生物技術的未來與行業的對立嗎?在這種情況下,我們的免費報告是一個很好的起點。
收入預測與低市銷率相匹配嗎?
爲了證明其市銷率是合理的,自適應生物技術需要實現落後於該行業的緩慢增長。
回顧過去,去年該公司的收入下降了8.1%,令人沮喪。但是,在此之前的幾年非常強勁,這意味着它在過去三年中仍然能夠將總收入增長73%,令人印象深刻。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。
展望來看,根據關注該公司的八位分析師的估計,未來三年每年將實現19%的增長。由於該行業每年的收入預計僅爲6.4%,該公司有望實現更強勁的收入業績。
有了這些信息,我們覺得奇怪的是,自適應生物技術的市銷率低於該行業。顯然,一些股東對預測表示懷疑,並一直在接受大幅降低的銷售價格。
最後一句話
Adaptive Biotechnologies最近疲軟的股價使其市銷率回落至其他生命科學公司的下方。儘管市銷率不應該成爲決定你是否買入股票的決定性因素,但它是衡量收入預期的有力晴雨表。
Adaptive Biotechnologies的分析師預測顯示,其優異的收入前景對市銷率的貢獻沒有我們預期的那麼高。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。
在採取下一步行動之前,您應該了解我們發現的適應性生物技術的兩個警告信號。
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?對內容感到擔憂嗎?請直接聯繫我們。或者,也可以發送電子郵件至編輯團隊 (at) simplywallst.com。
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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