Little Excitement Around Pieris Pharmaceuticals, Inc.'s (NASDAQ:PIRS) Revenues As Shares Take 27% Pounding
Little Excitement Around Pieris Pharmaceuticals, Inc.'s (NASDAQ:PIRS) Revenues As Shares Take 27% Pounding
Pieris Pharmaceuticals, Inc. (NASDAQ:PIRS) shareholders won't be pleased to see that the share price has had a very rough month, dropping 27% and undoing the prior period's positive performance. For any long-term shareholders, the last month ends a year to forget by locking in a 82% share price decline.
Following the heavy fall in price, Pieris Pharmaceuticals' price-to-sales (or "P/S") ratio of 0.3x might make it look like a strong buy right now compared to the wider Biotechs industry in the United States, where around half of the companies have P/S ratios above 12.6x and even P/S above 63x are quite common. However, the P/S might be quite low for a reason and it requires further investigation to determine if it's justified.
What Does Pieris Pharmaceuticals' P/S Mean For Shareholders?
Pieris Pharmaceuticals certainly has been doing a great job lately as it's been growing its revenue at a really rapid pace. One possibility is that the P/S ratio is low because investors think this strong revenue growth might actually underperform the broader industry in the near future. If you like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's out of favour.
Want the full picture on earnings, revenue and cash flow for the company? Then our free report on Pieris Pharmaceuticals will help you shine a light on its historical performance.Is There Any Revenue Growth Forecasted For Pieris Pharmaceuticals?
In order to justify its P/S ratio, Pieris Pharmaceuticals would need to produce anemic growth that's substantially trailing the industry.
Taking a look back first, we see that the company grew revenue by an impressive 65% last year. Pleasingly, revenue has also lifted 46% in aggregate from three years ago, thanks to the last 12 months of growth. So we can start by confirming that the company has done a great job of growing revenue over that time.
This is in contrast to the rest of the industry, which is expected to grow by 148% over the next year, materially higher than the company's recent medium-term annualised growth rates.
In light of this, it's understandable that Pieris Pharmaceuticals' P/S sits below the majority of other companies. It seems most investors are expecting to see the recent limited growth rates continue into the future and are only willing to pay a reduced amount for the stock.
The Bottom Line On Pieris Pharmaceuticals' P/S
Having almost fallen off a cliff, Pieris Pharmaceuticals' share price has pulled its P/S way down as well. 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 we suspected, our examination of Pieris Pharmaceuticals revealed its three-year revenue trends are contributing to its low P/S, given they look worse than current industry expectations. At this stage investors feel the potential for an improvement in revenue isn't great enough to justify a higher P/S ratio. Unless the recent medium-term conditions improve, they will continue to form a barrier for the share price around these levels.
It is also worth noting that we have found 5 warning signs for Pieris Pharmaceuticals (2 are a bit unpleasant!) that you need to take into consideration.
If you're unsure about the strength of Pieris Pharmaceuticals' business, why not explore our interactive list of stocks with solid business fundamentals for some other companies you may have missed.
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.
皮爾斯製藥公司(納斯達克股票代碼:PIRS)股東不會高興地看到股價經歷了一個非常艱難的月份,下跌了27%,抵消了前一時期的積極表現。對於任何長期股東來說,最後一個月的股價下跌幅度爲82%,從而結束了令人難忘的一年。
在價格大幅下跌之後,與美國整個生物技術行業相比,Pieris Pharmaceuticals的0.3倍市銷率(或 “市盈率”)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12.6倍,甚至市盈率高於63倍也很常見。但是,市銷率可能很低是有原因的,需要進一步調查以確定其是否合理。
Pieris Pharmaceuticals的市銷率對股東意味着什麼?
Pieris Pharmaceuticals最近確實做得很好,因爲它的收入增長非常快。一種可能性是市銷率很低,因爲投資者認爲這種強勁的收入增長在不久的將來實際上可能低於整個行業。如果你喜歡這家公司,你希望情況並非如此,這樣你就有可能在它失寵的時候買入一些股票。
想全面了解公司的收益、收入和現金流嗎?然後,我們關於Pieris Pharmicals的免費報告將幫助您了解其歷史表現。預計Pieris製藥的收入會增長嗎?
爲了證明其市銷率是合理的,Pieris Pharmicals需要實現大幅落後於該行業的疲軟增長。
首先回顧一下,我們發現該公司去年的收入增長了令人印象深刻的65%。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46%。因此,我們可以首先確認該公司在這段時間內在增加收入方面做得很好。
這與該行業的其他部門形成鮮明對比,預計明年該行業將增長148%,大大高於該公司最近的中期年化增長率。
有鑑於此,Pieris Pharmaceuticals的市銷率低於其他多數公司是可以理解的。看來大多數投資者都預計近期的有限增長率將持續到未來,他們只願意爲該股支付較低的金額。
Pieris Pharmaceuticals市銷率的底線
Pieris Pharmaceuticals的股價幾乎跌下了懸崖,其市銷率也大幅下降。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。
正如我們所懷疑的那樣,我們對Pieris Pharmicals的檢查顯示,其三年收入趨勢是其低市銷率的原因,因爲這些趨勢看起來不如當前的行業預期。在現階段,投資者認爲,收入改善的可能性不足以證明更高的市銷率是合理的。除非最近的中期狀況有所改善,否則它們將繼續構成股價在這些水平附近的障礙。
還值得注意的是,我們已經發現了 Pieris Pharmicals 的 5 個警告信號(2 個有點不愉快!)這是你需要考慮的。
如果您不確定Pieris Pharmaceuticals的業務實力,爲什麼不瀏覽我們的互動式股票清單,其中列出了您可能錯過的其他一些公司的業務基礎穩健的股票。
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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