Revenues Tell The Story For Cepton, Inc. (NASDAQ:CPTN) As Its Stock Soars 26%
Revenues Tell The Story For Cepton, Inc. (NASDAQ:CPTN) As Its Stock Soars 26%
Cepton, Inc. (NASDAQ:CPTN) shares have had a really impressive month, gaining 26% after a shaky period beforehand. Not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 24% in the last twelve months.
Since its price has surged higher, you could be forgiven for thinking Cepton is a stock not worth researching with a price-to-sales ratios (or "P/S") of 3.7x, considering almost half the companies in the United States' Electronic industry have P/S ratios below 1.8x. 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 Cepton's P/S Mean For Shareholders?
Cepton certainly has been doing a good job lately as its revenue growth has been positive while most other companies have been seeing their revenue go backwards. Perhaps the market is expecting the company's future revenue growth to buck the trend of the industry, contributing to a higher P/S. However, if this isn't the case, investors might get caught out paying too much for the stock.
If you'd like to see what analysts are forecasting going forward, you should check out our free report on Cepton.How Is Cepton's Revenue Growth Trending?
The only time you'd be truly comfortable seeing a P/S as high as Cepton's is when the company's growth is on track to outshine the industry.
If we review the last year of revenue growth, the company posted a terrific increase of 76%. The latest three year period has also seen an incredible overall rise in revenue, aided by its incredible short-term performance. Accordingly, shareholders would have been over the moon with those medium-term rates of revenue growth.
Shifting to the future, estimates from the four analysts covering the company suggest revenue should grow by 159% per annum over the next three years. That's shaping up to be materially higher than the 8.9% each year growth forecast for the broader industry.
In light of this, it's understandable that Cepton's P/S sits above the majority of other companies. Apparently shareholders aren't keen to offload something that is potentially eyeing a more prosperous future.
The Bottom Line On Cepton's P/S
Cepton shares have taken a big step in a northerly direction, but its P/S is elevated as a result. 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.
We've established that Cepton maintains its high P/S on the strength of its forecasted revenue growth being higher than the the rest of the Electronic industry, as expected. Right now shareholders are comfortable with the P/S as they are quite confident future revenues aren't under threat. It's hard to see the share price falling strongly in the near future under these circumstances.
There are also other vital risk factors to consider before investing and we've discovered 1 warning sign for Cepton that you should be aware of.
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.
Cepton, Inc.(納斯達克股票代碼:CPTN)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26%。並非所有股東都會感到歡欣鼓舞,因爲股價在過去十二個月中仍然下跌了非常令人失望的24%。
鑑於Cepton的價格飆升,考慮到美國電子行業中將近一半的公司的市銷率低於1.8倍,你認爲Cepton是一隻不值得研究的股票,其市銷率(或 “P/S”)爲3.7倍,這是可以原諒的。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。
Cepton的市銷率對股東意味着什麼?
Cepton最近確實做得很好,因爲其收入增長是正的,而大多數其他公司的收入卻在倒退。也許市場預計公司未來的收入增長將逆轉該行業的趨勢,從而提高市銷率。但是,如果不是這樣,投資者可能會陷入爲股票支付過多費用的困境。
如果你想了解分析師對未來的預測,你應該查看我們關於Cepton的免費報告。Cepton 的收入增長趨勢如何?
只有當公司的增長有望超越行業時,你才能真正放心地看到像Cepton一樣高的市銷率。
如果我們回顧一下去年的收入增長,該公司公佈了76%的驚人增長。得益於其令人難以置信的短期表現,最近三年的總體收入也實現了驚人的增長。因此,有了這些中期收入增長率,股東們就會大吃一驚。
展望未來,負責該公司的四位分析師的估計表明,未來三年收入每年將增長159%。這將大大高於整個行業每年8.9%的增長預期。
有鑑於此,Cepton的市銷率高於其他多數公司是可以理解的。顯然,股東們並不熱衷於轉移可能着眼於更繁榮未來的東西。
Cepton 市銷率的底線
Cepton股價向北方向邁出了一大步,但其市銷率因此上升。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。
我們已經確定,Cepton之所以保持較高的市銷率,是因爲其預測的收入增長如預期的那樣高於電子行業的其他部門。目前,股東們對市銷率感到滿意,因爲他們非常有信心未來的收入不會受到威脅。在這種情況下,很難看到股價在不久的將來會強勁下跌。
在投資之前,還有其他重要的風險因素需要考慮,我們發現了Cepton的一個警告信號,你應該注意這一點。
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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