Not Many Are Piling Into Dada Nexus Limited (NASDAQ:DADA) Stock Yet As It Plummets 26%
Not Many Are Piling Into Dada Nexus Limited (NASDAQ:DADA) Stock Yet As It Plummets 26%
Dada Nexus Limited (NASDAQ:DADA) shareholders won't be pleased to see that the share price has had a very rough month, dropping 26% 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 67% share price decline.
Even after such a large drop in price, it's still not a stretch to say that Dada Nexus' price-to-sales (or "P/S") ratio of 0.3x right now seems quite "middle-of-the-road" compared to the Consumer Retailing industry in the United States, seeing as it matches the P/S ratio of the wider industry. While this might not raise any eyebrows, if the P/S ratio is not justified investors could be missing out on a potential opportunity or ignoring looming disappointment.
What Does Dada Nexus' Recent Performance Look Like?
Dada Nexus certainly has been doing a good job lately as it's been growing revenue more than most other companies. Perhaps the market is expecting this level of performance to taper off, keeping the P/S from soaring. 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 not quite in favour.
Want the full picture on analyst estimates for the company? Then our free report on Dada Nexus will help you uncover what's on the horizon.How Is Dada Nexus' Revenue Growth Trending?
Dada Nexus' P/S ratio would be typical for a company that's only expected to deliver moderate growth, and importantly, perform in line with the industry.
If we review the last year of revenue growth, the company posted a worthy increase of 12%. Pleasingly, revenue has also lifted 83% in aggregate from three years ago, partly thanks to the last 12 months of growth. Accordingly, shareholders would have definitely welcomed those medium-term rates of revenue growth.
Turning to the outlook, the next three years should generate growth of 12% each year as estimated by the nine analysts watching the company. With the industry only predicted to deliver 4.7% per year, the company is positioned for a stronger revenue result.
With this information, we find it interesting that Dada Nexus is trading at a fairly similar P/S compared to the industry. It may be that most investors aren't convinced the company can achieve future growth expectations.
The Key Takeaway
With its share price dropping off a cliff, the P/S for Dada Nexus looks to be in line with the rest of the Consumer Retailing industry. 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 Dada Nexus currently trades on a lower than expected P/S since its forecasted revenue growth is higher than the wider industry. When we see a strong revenue outlook, with growth outpacing the industry, we can only assume potential uncertainty around these figures are what might be placing slight pressure on the P/S ratio. It appears some are indeed 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 2 warning signs for Dada Nexus that 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).
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.
Dada Nexus Limited(納斯達克股票代碼:DADA)的股東們不會很高興看到股價經歷了一個非常艱難的月份,下跌了26%,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67%,從而結束了令人難忘的一年。
即使在價格大幅下跌之後,可以毫不誇張地說,與美國消費零售行業相比,Dada Nexus的0.3倍市銷率(或 “市盈率”)目前看來相當 “處於中間位置”,因爲它與整個行業的市盈率相當。儘管這可能不會引起任何關注,但如果市銷率不合理,投資者可能會錯過潛在的機會或無視迫在眉睫的失望情緒。
Dada Nexus 最近的表現是什麼樣子?
Dada Nexus最近確實做得很好,因爲它的收入增長幅度超過了大多數其他公司。也許市場預計這種表現水平將逐漸減弱,從而防止市銷率飆升。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不太受青睞的情況下買入一些股票。
想全面了解分析師對公司的估計嗎?然後,我們關於Dada Nexus的免費報告將幫助您發現即將發生的事情。Dada Nexus 的收入增長趨勢如何?
對於一家預計只會實現適度增長,而且重要的是,表現與行業持平的公司來說,Dada Nexus的市銷率是典型的。
如果我們回顧一下去年的收入增長,該公司公佈了12%的可觀增長。令人高興的是,總收入也比三年前增長了83%,這在一定程度上要歸功於過去12個月的增長。因此,股東們肯定會對這些中期收入增長率表示歡迎。
談到前景,根據關注該公司的九位分析師的估計,未來三年每年將實現12%的增長。由於該行業預計每年僅實現4.7%的收入,該公司有望實現更強勁的收入業績。
有了這些信息,我們發現有趣的是,與行業相比,Dada Nexus的市銷率相當相似。可能是大多數投資者不相信公司能夠實現未來的增長預期。
關鍵要點
隨着股價跌下懸崖,Dada Nexus的市銷率似乎與其他消費零售行業持平。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,Dada Nexus目前的市銷率低於預期,因爲其預測的收入增長高於整個行業。當我們看到強勁的收入前景,增長速度超過行業時,我們只能假設圍繞這些數字的潛在不確定性可能會給市銷率帶來輕微的壓力。看來有些人確實在預測收入不穩定,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,我們已經確定了兩個你應該注意的Dada Nexus警告信號。
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。
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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