Plug Power Inc.'s (NASDAQ:PLUG) Popularity With Investors Under Threat As Stock Sinks 25%
Plug Power Inc.'s (NASDAQ:PLUG) Popularity With Investors Under Threat As Stock Sinks 25%
Plug Power Inc. (NASDAQ:PLUG) shareholders that were waiting for something to happen have been dealt a blow with a 25% share price drop in the last month. For any long-term shareholders, the last month ends a year to forget by locking in a 73% share price decline.
Even after such a large drop in price, there still wouldn't be many who think Plug Power's price-to-sales (or "P/S") ratio of 1.9x is worth a mention when the median P/S in the United States' Electrical industry is similar at about 1.7x. 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 Plug Power's P/S Mean For Shareholders?
With revenue growth that's inferior to most other companies of late, Plug Power has been relatively sluggish. Perhaps the market is expecting future revenue performance to lift, which has kept the P/S from declining. However, if this isn't the case, investors might get caught out paying too much for the stock.
Want the full picture on analyst estimates for the company? Then our free report on Plug Power will help you uncover what's on the horizon.How Is Plug Power's Revenue Growth Trending?
In order to justify its P/S ratio, Plug Power would need to produce growth that's similar to the industry.
Taking a look back first, we see that the company grew revenue by an impressive 27% last year. However, the latest three year period hasn't been as great in aggregate as it didn't manage to provide any growth at all. So it appears to us that the company has had a mixed result in terms of growing revenue over that time.
Turning to the outlook, the next three years should generate growth of 32% per annum as estimated by the analysts watching the company. Meanwhile, the rest of the industry is forecast to expand by 36% per year, which is noticeably more attractive.
With this in mind, we find it intriguing that Plug Power's P/S is closely matching its industry peers. Apparently many investors in the company are less bearish than analysts indicate and aren't willing to let go of their stock right now. These shareholders may be setting themselves up for future disappointment if the P/S falls to levels more in line with the growth outlook.
The Key Takeaway
Following Plug Power's share price tumble, its P/S is just clinging on to the industry median P/S. 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.
Our look at the analysts forecasts of Plug Power's revenue prospects has shown that its inferior revenue outlook isn't negatively impacting its P/S as much as we would have predicted. At present, we aren't confident in the P/S as the predicted future revenues aren't likely to support a more positive sentiment for long. Circumstances like this present a risk to current and prospective investors who may see share prices fall if the low revenue growth impacts the sentiment.
Before you settle on your opinion, we've discovered 3 warning signs for Plug Power that 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.
上個月股價下跌了25%,這給一直在等待事情發生的Plug Power Inc.(納斯達克股票代碼:PLUG)的股東受到了打擊。對於任何長期股東來說,最後一個月的股價下跌幅度爲73%,從而結束了令人難忘的一年。
即使價格下跌如此之大,當美國電氣行業的市盈率中位數約爲1.7倍時,仍然沒有多少人認爲Plug Power的1.9倍市銷率(或 “市盈率”)值得一提。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。
Plug Power的市銷率對股東意味着什麼?
由於最近的收入增長不及大多數其他公司,Plug Power一直相對疲軟。也許市場預計未來的收入表現將有所提高,這阻止了市銷率的下降。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。
想全面了解分析師對公司的估計嗎?然後,我們關於Plug Power的免費報告將幫助您發現即將發生的事情。Plug Power 的收入增長趨勢如何?
爲了證明其市銷率是合理的,Plug Power需要實現與該行業相似的增長。
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27%。但是,最近三年的總體表現並不那麼好,因爲它根本沒有帶來任何增長。因此,在我們看來,該公司的收入增長好壞參半。
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32%的增長。同時,預計該行業的其他部門每年將增長36%,這明顯更具吸引力。
考慮到這一點,我們發現有趣的是,Plug Power的市銷率與業內同行非常接近。顯然,該公司的許多投資者沒有分析師所表示的那麼看跌,並且不願意立即放棄股票。如果市銷率降至更符合增長前景的水平,這些股東可能會爲未來的失望做好準備。
關鍵要點
在Plug Power股價暴跌之後,其市盈率僅保持在行業中位數。僅使用市銷售比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。
我們對分析師對Plug Power收入前景的預測的研究表明,其較差的收入前景並沒有像我們預期的那樣對市銷售率產生負面影響。目前,我們對市銷率沒有信心,因爲預期的未來收入不太可能長期支撐更積極的情緒。像這樣的情況給當前和潛在的投資者帶來了風險,如果低收入增長影響市場情緒,他們可能會看到股價下跌。
在你確定自己的意見之前,我們已經發現了 3 個 Plug Power 警告信號,你應該注意這些信號。
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。
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