10x Genomics, Inc. (NASDAQ:TXG) Stocks Pounded By 26% But Not Lagging Industry On Growth Or Pricing
10x Genomics, Inc. (NASDAQ:TXG) Stocks Pounded By 26% But Not Lagging Industry On Growth Or Pricing
Unfortunately for some shareholders, the 10x Genomics, Inc. (NASDAQ:TXG) share price has dived 26% in the last thirty days, prolonging recent pain. The drop over the last 30 days has capped off a tough year for shareholders, with the share price down 48% in that time.
Even after such a large drop in price, when almost half of the companies in the United States' Life Sciences industry have price-to-sales ratios (or "P/S") below 3.5x, you may still consider 10x Genomics as a stock probably not worth researching with its 5.4x P/S ratio. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the elevated P/S.
How Has 10x Genomics Performed Recently?
With its revenue growth in positive territory compared to the declining revenue of most other companies, 10x Genomics has been doing quite well of late. The P/S ratio is probably high because investors think the company will continue to navigate the broader industry headwinds better than most. 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 10x Genomics.What Are Revenue Growth Metrics Telling Us About The High P/S?
The only time you'd be truly comfortable seeing a P/S as high as 10x Genomics' is when the company's growth is on track to outshine the industry.
Retrospectively, the last year delivered an exceptional 20% gain to the company's top line. The strong recent performance means it was also able to grow revenue by 107% in total over the last three years. Therefore, it's fair to say the revenue growth recently has been superb for the company.
Turning to the outlook, the next three years should generate growth of 14% per year as estimated by the analysts watching the company. That's shaping up to be materially higher than the 6.4% per year growth forecast for the broader industry.
In light of this, it's understandable that 10x Genomics' 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 10x Genomics' P/S
Despite the recent share price weakness, 10x Genomics' P/S remains higher than most other companies in the industry. While the price-to-sales ratio shouldn't be the defining factor in whether you buy a stock or not, it's quite a capable barometer of revenue expectations.
As we suspected, our examination of 10x Genomics' analyst forecasts revealed that its superior revenue outlook is contributing to its high P/S. Right now shareholders are comfortable with the P/S as they are quite confident future revenues aren't under threat. Unless these conditions change, they will continue to provide strong support to the share price.
Having said that, be aware 10x Genomics is showing 3 warning signs in our investment analysis, you should know about.
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.
對於一些股東來說,不幸的是,10x Genomics, Inc.(納斯達克股票代碼:TXG)的股價在過去三十天中下跌了26%,延續了最近的痛苦。過去30天的下跌結束了股東艱難的一年,當時股價下跌了48%。
即使在價格大幅下跌之後,當美國生命科學行業將近一半的公司的市銷比(或 “市銷率”)低於3.5倍時,你仍然可以將10x Genomics視爲股票,其市銷率爲5.4倍,可能不值得研究。但是,我們需要更深入地挖掘,以確定市銷率上升是否有合理的基礎。
10x 基因組學最近的表現如何?
與大多數其他公司的收入下降相比,10x Genomics的收入增長處於正值區間,最近表現良好。市銷率可能很高,因爲投資者認爲公司將繼續比多數公司更好地應對更廣泛的行業阻力。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10倍基因組學的免費報告。收入增長指標告訴我們高市銷率有哪些?
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市銷率高達基因組學的10倍。
回顧過去,去年的公司收入實現了20%的驚人增長。最近的強勁表現意味着它在過去三年中總收入增長了107%。因此,可以公平地說,該公司最近的收入增長非常好。
展望來看,根據關注該公司的分析師的估計,未來三年將實現每年14%的增長。這將大大高於整個行業每年6.4%的增長預期。
有鑑於此,10x Genomics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。
10x Genomics 市銷率的底線
儘管最近股價疲軟,但10x Genomics的市銷率仍然高於業內大多數其他公司。儘管市銷率不應該成爲決定你是否買入股票的決定性因素,但它是衡量收入預期的有力晴雨表。
正如我們所懷疑的那樣,我們對10x Genomics分析師預測的審查顯示,其優異的收入前景是其高市銷率的原因。目前,股東們對市銷售率感到滿意,因爲他們非常有信心未來的收入不會受到威脅。除非這些條件發生變化,否則它們將繼續爲股價提供強有力的支撐。
話雖如此,請注意,在我們的投資分析中,10x Genomics顯示出3個警告信號,你應該知道。
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。
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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