CVRx, Inc.'s (NASDAQ:CVRX) 26% Cheaper Price Remains In Tune With Revenues
CVRx, Inc.'s (NASDAQ:CVRX) 26% Cheaper Price Remains In Tune With Revenues
To the annoyance of some shareholders, CVRx, Inc. (NASDAQ:CVRX) shares are down a considerable 26% in the last month, which continues a horrid run for the company. Still, a bad month hasn't completely ruined the past year with the stock gaining 60%, which is great even in a bull market.
Although its price has dipped substantially, CVRx may still be sending very bearish signals at the moment with a price-to-sales (or "P/S") ratio of 8.4x, since almost half of all companies in the Medical Equipment industry in the United States have P/S ratios under 3.2x and even P/S lower than 1.2x are not unusual. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the highly elevated P/S.
What Does CVRx's Recent Performance Look Like?
Recent times have been advantageous for CVRx as its revenues have been rising faster than most other companies. The P/S is probably high because investors think this strong revenue performance will continue. You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason.
Want the full picture on analyst estimates for the company? Then our free report on CVRx will help you uncover what's on the horizon.Is There Enough Revenue Growth Forecasted For CVRx?
There's an inherent assumption that a company should far outperform the industry for P/S ratios like CVRx's to be considered reasonable.
If we review the last year of revenue growth, the company posted a terrific increase of 75%. This great performance means it was also able to deliver immense revenue growth over the last three years. Accordingly, shareholders would have been over the moon with those medium-term rates of revenue growth.
Shifting to the future, estimates from the five analysts covering the company suggest revenue should grow by 42% per annum over the next three years. That's shaping up to be materially higher than the 10% per annum growth forecast for the broader industry.
With this information, we can see why CVRx is trading at such a high P/S compared to the industry. Apparently shareholders aren't keen to offload something that is potentially eyeing a more prosperous future.
The Key Takeaway
Even after such a strong price drop, CVRx's P/S still exceeds the industry median significantly. It's argued the price-to-sales ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator.
We've established that CVRx maintains its high P/S on the strength of its forecasted revenue growth being higher than the the rest of the Medical Equipment industry, as expected. It appears that shareholders are confident in the company's future revenues, which is propping up the P/S. It's hard to see the share price falling strongly in the near future under these circumstances.
You should always think about risks. Case in point, we've spotted 2 warning signs for CVRx you should be aware of.
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,CVRx, Inc.(納斯達克股票代碼:CVRX)的股價在上個月下跌了26%,這延續了該公司的糟糕表現。儘管如此,糟糕的月份並沒有完全毀掉過去的一年,該股上漲了60%,即使在牛市中也是不錯的。
儘管其價格已大幅下跌,但CVRx目前可能仍會發出非常看跌的信號,市銷率(或 “市銷率”)爲8.4倍,因爲美國醫療設備行業幾乎有一半的公司市盈率低於3.2倍,甚至市盈率低於1.2倍的情況並不少見。但是,我們需要更深入地挖掘,以確定市銷售率大幅上升是否有合理的依據。
CvRx 最近的表現是什麼樣子?
最近對CVRx來說是有利的,因爲其收入的增長速度快於大多數其他公司。市銷率可能很高,因爲投資者認爲這種強勁的收入表現將繼續下去。你真的希望如此,否則你會無緣無故地付出相當大的代價。
想全面了解分析師對公司的估計嗎?然後,我們關於CVRx的免費報告將幫助您發現即將發生的事情。預計 cvRx 的收入增長是否足夠?
人們固有的假設是,如果像CVRx這樣的市銷率被認爲是合理的,公司的表現應該遠遠超過該行業。
如果我們回顧一下去年的收入增長,該公司公佈了75%的驚人增長。這種出色的表現意味着它在過去三年中還能夠實現巨大的收入增長。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,報道該公司的五位分析師的估計表明,未來三年收入將每年增長42%。這將大大高於整個行業每年10%的增長預測。
有了這些信息,我們可以了解與行業相比,CVRx的市銷率爲何如此之高。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。
關鍵要點
即使價格下跌如此強勁,CvRx的市銷率仍大大超過行業中位數。有人認爲,在某些行業中,市銷率是衡量價值的較差指標,但它可以是一個有力的商業信心指標。
我們已經確定,CVRx保持了較高的市銷率,原因是其預測的收入增長將高於醫療設備行業的其他部門。看來股東對公司的未來收入充滿信心,這支撐了市銷率。在這種情況下,很難看到股價在不久的將來會強勁下跌。
你應該時刻考慮風險。舉個例子,我們發現了 2 個你應該注意的 CVRx 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?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