iLearningEngines, Inc. (NASDAQ:AILE) shareholders that were waiting for something to happen have been dealt a blow with a 31% share price drop in the last month. The drop over the last 30 days has capped off a tough year for shareholders, with the share price down 34% in that time.
Even after such a large drop in price, iLearningEngines' price-to-sales (or "P/S") ratio of 2.4x might still make it look like a buy right now compared to the Software industry in the United States, where around half of the companies have P/S ratios above 4.1x and even P/S above 10x are quite common. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the reduced P/S.
NasdaqCM:AILE Price to Sales Ratio vs Industry April 23rd 2024
What Does iLearningEngines' P/S Mean For Shareholders?
With revenue growth that's superior to most other companies of late, iLearningEngines has been doing relatively well. Perhaps the market is expecting future revenue performance to dive, which has kept the P/S suppressed. 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 analyst estimates for the company? Then our free report on iLearningEngines will help you uncover what's on the horizon.
Do Revenue Forecasts Match The Low P/S Ratio?
There's an inherent assumption that a company should underperform the industry for P/S ratios like iLearningEngines' to be considered reasonable.
If we review the last year of revenue growth, the company posted a terrific increase of 36%. The latest three year period has also seen an excellent 174% overall rise in revenue, aided by its short-term performance. Accordingly, shareholders would have definitely welcomed those medium-term rates of revenue growth.
Shifting to the future, estimates from the sole analyst covering the company suggest revenue should grow by 27% each year over the next three years. With the industry only predicted to deliver 15% each year, the company is positioned for a stronger revenue result.
In light of this, it's peculiar that iLearningEngines' P/S sits below the majority of other companies. It looks like most investors are not convinced at all that the company can achieve future growth expectations.
What We Can Learn From iLearningEngines' P/S?
The southerly movements of iLearningEngines' shares means its P/S is now sitting at a pretty low level. Using the price-to-sales ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects.
To us, it seems iLearningEngines currently trades on a significantly depressed P/S given its forecasted revenue growth is higher than the rest of its industry. There could be some major risk factors that are placing downward pressure on the P/S ratio. It appears the market could be anticipating revenue instability, because these conditions should normally provide a boost to the share price.
Don't forget that there may be other risks. For instance, we've identified 5 warning signs for iLearningEngines (4 are concerning) 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).
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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.
iLearningEngines,Inc.(納斯達克股票代碼:AILE)股價在過去一個月裏下跌了31%,這讓那些翹首以待的股東們受到了打擊。過去30天的下跌結束了股東艱難的一年,當時股價下跌了34%。
即使在價格大幅下跌之後,iLearningEngines的2.4倍市銷率(或 “市銷率”)與美國軟件行業相比,目前仍可能看起來像買入。在美國,大約一半的公司的市銷率高於4.1倍,甚至市盈率高於10倍也很常見。但是,我們需要更深入地挖掘以確定降低市銷率是否有合理的依據。
納斯達克股票代碼:AILE 與行業的股價銷售比率 2024 年 4 月 23 日
iLearningEngines的市銷率對股東意味着什麼?
由於最近的收入增長優於大多數其他公司,iLearningEngines的表現相對較好。也許市場預計未來的收入表現將下降,這使市銷率一直受到抑制。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。
想全面了解分析師對公司的估計嗎?那麼我們關於iLearningEngines的免費報告將幫助你發現即將發生的事情。
收入預測與低市銷率相匹配嗎?
人們固有的假設是,要使像iLearningEngines這樣的市銷率被認爲是合理的,公司的表現應該低於該行業。
如果我們回顧一下去年的收入增長,該公司公佈了36%的驚人增長。在短期表現的推動下,最近三年的總體收入也實現了174%的出色增長。因此,股東們肯定會對這些中期收入增長率表示歡迎。
展望未來,負責該公司的唯一分析師的估計表明,未來三年收入每年將增長27%。由於該行業預計每年僅實現15%的收入,該公司有望實現更強勁的收入業績。
有鑑於此,奇怪的是,iLearningEngines的市銷率低於其他多數公司。看來大多數投資者根本不相信公司能夠實現未來的增長預期。
我們可以從iLearningEngines的市銷率中學到什麼?
iLearningEngines股價向南走勢意味着其市銷率目前處於相當低的水平。僅使用市銷率來確定是否應該出售股票是不明智的,但它可以作爲公司未來前景的實用指南。
在我們看來,鑑於iLearningEngines的預測收入增長高於該行業的其他部門,目前的市銷率似乎嚴重低迷。可能有一些主要的風險因素給市銷率帶來下行壓力。看來市場可能會預期收入不穩定,因爲這些條件通常會提振股價。
別忘了可能還有其他風險。例如,我們已經確定了5個你應該注意的iLearningEngines警告信號(其中4個令人擔憂)。
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。