After Leaping 300% Pavillon Holdings Ltd. (SGX:596) Shares Are Not Flying Under The Radar
After Leaping 300% Pavillon Holdings Ltd. (SGX:596) Shares Are Not Flying Under The Radar
Pavillon Holdings Ltd. (SGX:596) shareholders have had their patience rewarded with a 300% share price jump in the last month. The last 30 days bring the annual gain to a very sharp 48%.
After such a large jump in price, given close to half the companies operating in Singapore's Hospitality industry have price-to-sales ratios (or "P/S") below 1.6x, you may consider Pavillon Holdings as a stock to potentially avoid with its 3.2x P/S ratio. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's as high as it is.
What Does Pavillon Holdings' Recent Performance Look Like?
Pavillon Holdings has been doing a good job lately as it's been growing revenue at a solid pace. One possibility is that the P/S ratio is high because investors think this respectable revenue growth will be enough to outperform the broader industry in the near future. If not, then existing shareholders may be a little nervous about the viability of the share price.
Want the full picture on earnings, revenue and cash flow for the company? Then our free report on Pavillon Holdings will help you shine a light on its historical performance.Do Revenue Forecasts Match The High P/S Ratio?
Pavillon Holdings' P/S ratio would be typical for a company that's expected to deliver solid growth, and importantly, perform better than the industry.
Taking a look back first, we see that the company managed to grow revenues by a handy 10% last year. The latest three year period has also seen an excellent 112% overall rise in revenue, aided somewhat by its short-term performance. Therefore, it's fair to say the revenue growth recently has been superb for the company.
This is in contrast to the rest of the industry, which is expected to grow by 18% over the next year, materially lower than the company's recent medium-term annualised growth rates.
In light of this, it's understandable that Pavillon Holdings' P/S sits above the majority of other companies. It seems most investors are expecting this strong growth to continue and are willing to pay more for the stock.
The Key Takeaway
Pavillon Holdings' P/S is on the rise since its shares have risen strongly. We'd say the price-to-sales ratio's power isn't primarily as a valuation instrument but rather to gauge current investor sentiment and future expectations.
It's no surprise that Pavillon Holdings can support its high P/S given the strong revenue growth its experienced over the last three-year is superior to the current industry outlook. In the eyes of shareholders, the probability of a continued growth trajectory is great enough to prevent the P/S from pulling back. Barring any significant changes to the company's ability to make money, the share price should continue to be propped up.
You need to take note of risks, for example - Pavillon Holdings has 2 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.
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).
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.
上個月,Pavillon Holdings Ltd.(新加坡證券交易所股票代碼:596)股東的耐心得到了回報,股價上漲了300%。過去30天使年增長率達到非常大幅的48%。
在價格大幅上漲之後,鑑於近一半在新加坡酒店業運營的公司的市銷率(或 “市銷率”)低於1.6倍,您可以將Pavillon Holdings視爲可能避開的股票,其市銷率爲3.2倍。但是,僅按面值計算市銷率是不明智的,因爲可以解釋其爲何如此之高。
Pavillon Holdings最近的表現如何?
Pavillon Holdings最近表現不錯,收入一直在穩步增長。一種可能性是市銷率很高,因爲投資者認爲這種可觀的收入增長足以在不久的將來跑贏整個行業。如果不是,那麼現有股東可能會對股價的可行性有些緊張。
想全面了解公司的收益、收入和現金流嗎?那麼我們關於Pavillon Holdings的免費報告將幫助您了解其歷史表現。收入預測與高市銷率相匹配嗎?
Pavillon Holdings的市銷率對於一家有望實現穩健增長且重要的是表現優於行業的公司來說是典型的。
首先回顧一下,我們發現該公司去年的收入成功增長了10%。在最近三年中,總收入也實現了112%的出色增長,這在一定程度上得益於其短期表現。因此,可以公平地說,該公司最近的收入增長非常好。
這與該行業的其他部門形成鮮明對比,預計明年該行業將增長18%,大大低於該公司最近的中期年化增長率。
有鑑於此,Pavillon Holdings的市銷率高於其他多數公司是可以理解的。看來大多數投資者都預計這種強勁的增長將繼續下去,並願意爲該股支付更多費用。
關鍵要點
自股價強勁上漲以來,Pavillon Holdings的市銷率一直在上升。我們可以說,市銷比率的力量主要不是作爲一種估值工具,而是用來衡量當前的投資者情緒和未來預期。
鑑於Pavillon Holdings在過去三年的強勁收入增長優於當前的行業前景,Pavillon Holdings能夠支撐其高市銷率也就不足爲奇了。在股東眼中,持續增長軌跡的可能性很大,足以防止市銷率回落。除非公司的盈利能力發生任何重大變化,否則應繼續支撐股價。
例如,你需要注意風險——Pavillon Holdings有兩個警告標誌(還有一個讓我們有點不舒服),我們認爲你應該知道。
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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