Protagonist Therapeutics, Inc.'s (NASDAQ:PTGX) Business Is Trailing The Industry But Its Shares Aren't
Protagonist Therapeutics, Inc.'s (NASDAQ:PTGX) Business Is Trailing The Industry But Its Shares Aren't
You may think that with a price-to-sales (or "P/S") ratio of 26.3x Protagonist Therapeutics, Inc. (NASDAQ:PTGX) is a stock to avoid completely, seeing as almost half of all the Biotechs companies in the United States have P/S ratios under 13.2x and even P/S lower than 4x aren't out of the ordinary. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's so lofty.
How Has Protagonist Therapeutics Performed Recently?
With revenue growth that's inferior to most other companies of late, Protagonist Therapeutics has been relatively sluggish. One possibility is that the P/S ratio is high because investors think this lacklustre revenue performance will improve markedly. You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason.
If you'd like to see what analysts are forecasting going forward, you should check out our free report on Protagonist Therapeutics.Do Revenue Forecasts Match The High P/S Ratio?
Protagonist Therapeutics' P/S ratio would be typical for a company that's expected to deliver very strong growth, and importantly, perform much better than the industry.
Retrospectively, the last year delivered an exceptional 126% gain to the company's top line. Pleasingly, revenue has also lifted 110% in aggregate from three years ago, thanks to the last 12 months of growth. Accordingly, shareholders would have definitely welcomed those medium-term rates of revenue growth.
Turning to the outlook, the next three years should generate growth of 34% each year as estimated by the six analysts watching the company. That's shaping up to be materially lower than the 167% each year growth forecast for the broader industry.
In light of this, it's alarming that Protagonist Therapeutics' P/S sits above the majority of other companies. Apparently many investors in the company are way more bullish than analysts indicate and aren't willing to let go of their stock at any price. There's a good chance these shareholders are setting themselves up for future disappointment if the P/S falls to levels more in line with the growth outlook.
What Does Protagonist Therapeutics' P/S Mean For Investors?
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 comes as a surprise to see Protagonist Therapeutics trade at such a high P/S given the revenue forecasts look less than stellar. The weakness in the company's revenue estimate doesn't bode well for the elevated P/S, which could take a fall if the revenue sentiment doesn't improve. Unless these conditions improve markedly, it's very challenging to accept these prices as being reasonable.
Don't forget that there may be other risks. For instance, we've identified 2 warning signs for Protagonist Therapeutics that you should be aware of.
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.
你可能會認爲,在市銷率(或 “市盈率”)爲26.3倍的情況下,Protagonist Therapeutics, Inc.(納斯達克股票代碼:PTGX)是一隻值得完全避開的股票,因爲美國幾乎有一半的生物技術公司的市銷率低於13.2倍,即使市盈率低於4倍也並非不尋常。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。
主角療法最近的表現如何?
由於最近的收入增長不及大多數其他公司,Protagonist Therapeutics一直相對疲軟。一種可能性是市銷率很高,因爲投資者認爲這種乏善可陳的收入表現將顯著改善。你真的希望如此,否則你會無緣無故地付出相當大的代價。
如果你想了解分析師對未來的預測,你應該查看我們關於Protagonist Therapeutics的免費報告。收入預測與高市銷率相匹配嗎?
Protagonist Therapeutics的市銷率對於一家預計將實現非常強勁的增長且重要的是表現要好於行業的公司來說是典型的。
回顧過去,去年的公司收入實現了126%的驚人增長。令人高興的是,得益於過去12個月的增長,總收入也比三年前增長了110%。因此,股東們肯定會對這些中期收入增長率表示歡迎。
展望來看,根據關注該公司的六位分析師的估計,未來三年每年將實現34%的增長。這將大大低於整個行業每年167%的增長預期。
有鑑於此,令人震驚的是,Protagonist Therapeutics的市銷率高於其他多數公司。顯然,該公司的許多投資者比分析師所表示的要看漲得多,他們不願意以任何價格拋售股票。如果市銷售率降至更符合增長前景的水平,這些股東很有可能爲未來的失望做好準備。
Protagonist Therapeutics的市銷率對投資者意味着什麼?
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。
鑑於收入預測看起來不太理想,Protagonist Therapeutics的市銷率如此之高,這真是令人驚訝。公司收入估計的疲軟對於市銷率的上升來說並不是一個好兆頭,如果收入情緒沒有改善,市銷率可能會下降。除非這些條件顯著改善,否則要接受這些合理的價格是非常困難的。
別忘了可能還有其他風險。例如,我們已經確定了Protagonist Therapeutics的兩個警告信號,你應該注意這些信號。
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。
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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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