AXT, Inc. (NASDAQ:AXTI) Not Doing Enough For Some Investors As Its Shares Slump 27%
AXT, Inc. (NASDAQ:AXTI) Not Doing Enough For Some Investors As Its Shares Slump 27%
AXT, Inc. (NASDAQ:AXTI) shares have retraced a considerable 27% in the last month, reversing a fair amount of their solid recent performance. Longer-term shareholders would now have taken a real hit with the stock declining 2.0% in the last year.
After such a large drop in price, AXT's price-to-sales (or "P/S") ratio of 1.9x might make it look like a strong buy right now compared to the wider Semiconductor industry in the United States, where around half of the companies have P/S ratios above 4.4x and even P/S above 10x are quite common. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the highly reduced P/S.
How Has AXT Performed Recently?
While the industry has experienced revenue growth lately, AXT's revenue has gone into reverse gear, which is not great. Perhaps the P/S remains low as investors think the prospects of strong revenue growth aren't on the horizon. So while you could say the stock is cheap, investors will be looking for improvement before they see it as good value.
Want the full picture on analyst estimates for the company? Then our free report on AXT will help you uncover what's on the horizon.What Are Revenue Growth Metrics Telling Us About The Low P/S?
There's an inherent assumption that a company should far underperform the industry for P/S ratios like AXT's to be considered reasonable.
Retrospectively, the last year delivered a frustrating 46% decrease to the company's top line. As a result, revenue from three years ago have also fallen 21% overall. Accordingly, shareholders would have felt downbeat about the medium-term rates of revenue growth.
Looking ahead now, revenue is anticipated to climb by 20% during the coming year according to the four analysts following the company. Meanwhile, the rest of the industry is forecast to expand by 45%, which is noticeably more attractive.
With this in consideration, its clear as to why AXT's P/S is falling short industry peers. It seems most investors are expecting to see limited future growth and are only willing to pay a reduced amount for the stock.
The Final Word
AXT's P/S looks about as weak as its stock price lately. 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 AXT's analyst forecasts confirms that the company's underwhelming revenue outlook is a major contributor to its low P/S. Right now shareholders are accepting the low P/S as they concede future revenue probably won't provide any pleasant surprises. It's hard to see the share price rising strongly in the near future under these circumstances.
Before you take the next step, you should know about the 1 warning sign for AXT that we have uncovered.
It's important to make sure you look for a great company, not just the first idea you come across. So if growing profitability aligns with your idea of a great company, take a peek at this free list of interesting companies with strong recent earnings growth (and a low P/E).
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.
AXT, Inc.(納斯達克股票代碼:AXTI)的股價在上個月大幅回落了27%,扭轉了近期的穩健表現。由於該股去年下跌2.0%,長期股東現在將受到真正的打擊。
在價格大幅下跌之後,與美國整個半導體行業相比,AXT的1.9倍市銷率(或 “市銷率”)可能使其看起來像是一個強勁的買盤,在美國,大約一半的公司的市銷率高於4.4倍,甚至市盈率高於10倍也很常見。但是,我們需要更深入地挖掘,以確定大幅降低市銷率是否有合理的基礎。
AXT 最近的表現如何?
儘管該行業最近經歷了收入增長,但AXT的收入卻倒退了,這並不好。也許市銷率仍然很低,因爲投資者認爲強勁收入增長的前景尚未到來。因此,儘管你可以說股票很便宜,但投資者在將其視爲物有所值之前會尋求改善。
想全面了解分析師對公司的估計嗎?然後,我們關於AXT的免費報告將幫助您發現即將發生的事情。收入增長指標告訴我們低市銷率有哪些?
人們固有的假設是,如果像AXT這樣的市銷率被認爲是合理的,公司的表現應該遠遠低於該行業。
回顧過去,去年該公司的收入下降了令人沮喪的46%。結果,三年前的總體收入也下降了21%。因此,股東會對中期收入增長率感到悲觀。
根據關注該公司的四位分析師的說法,展望未來,來年收入預計將增長20%。同時,該行業的其他部門預計將增長45%,這明顯更具吸引力。
考慮到這一點,AXT的市銷率爲何低於業內同行,就顯而易見了。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金額。
最後一句話
最近,AXT的市銷率看起來與其股價一樣疲軟。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AXT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。目前,股東們正在接受低市銷售率,因爲他們承認未來的收入可能不會帶來任何驚喜。在這種情況下,很難看到股價在不久的將來強勁上漲。
在你採取下一步行動之前,你應該了解我們發現的AXT的1個警告信號。
重要的是要確保你尋找一家優秀的公司,而不僅僅是你遇到的第一個想法。因此,如果盈利能力的增長與你對一家優秀公司的想法一致,那就來看看這份免費名單吧,列出了最近收益增長強勁(市盈率低)的有趣公司。
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