The Caesarstone Ltd. (NASDAQ:CSTE) share price has done very well over the last month, posting an excellent gain of 63%. Looking back a bit further, it's encouraging to see the stock is up 60% in the last year.
Although its price has surged higher, Caesarstone may still be sending buy signals at present with its price-to-sales (or "P/S") ratio of 0.4x, considering almost half of all companies in the Building industry in the United States have P/S ratios greater than 1.5x and even P/S higher than 4x aren't out of the ordinary. However, the P/S might be low for a reason and it requires further investigation to determine if it's justified.
NasdaqGS:CSTE Price to Sales Ratio vs Industry April 25th 2024
How Caesarstone Has Been Performing
Caesarstone hasn't been tracking well recently as its declining revenue compares poorly to other companies, which have seen some growth in their revenues on average. It seems that many are expecting the poor revenue performance to persist, which has repressed the P/S ratio. If this is the case, then existing shareholders will probably struggle to get excited about the future direction of the share price.
If you'd like to see what analysts are forecasting going forward, you should check out our free report on Caesarstone.
Do Revenue Forecasts Match The Low P/S Ratio?
Caesarstone's P/S ratio would be typical for a company that's only expected to deliver limited growth, and importantly, perform worse than the industry.
Retrospectively, the last year delivered a frustrating 18% decrease to the company's top line. Regardless, revenue has managed to lift by a handy 16% in aggregate from three years ago, thanks to the earlier period of growth. Although it's been a bumpy ride, it's still fair to say the revenue growth recently has been mostly respectable for the company.
Turning to the outlook, the next year should bring diminished returns, with revenue decreasing 6.3% as estimated by the two analysts watching the company. With the industry predicted to deliver 7.0% growth, that's a disappointing outcome.
With this in consideration, we find it intriguing that Caesarstone's P/S is closely matching its industry peers. However, shrinking revenues are unlikely to lead to a stable P/S over the longer term. Even just maintaining these prices could be difficult to achieve as the weak outlook is weighing down the shares.
What Does Caesarstone's P/S Mean For Investors?
Caesarstone's stock price has surged recently, but its but its P/S still remains modest. 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.
It's clear to see that Caesarstone maintains its low P/S on the weakness of its forecast for sliding revenue, as expected. Right now shareholders are accepting the low P/S as they concede future revenue probably won't provide any pleasant surprises. Unless these conditions improve, they will continue to form a barrier for the share price around these levels.
We don't want to rain on the parade too much, but we did also find 1 warning sign for Caesarstone that you need to be mindful of.
If you're unsure about the strength of Caesarstone's business, why not explore our interactive list of stocks with solid business fundamentals for some other companies you may have missed.
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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.
在過去的一個月裏,Caesarstone Ltd(納斯達克股票代碼:CSTE)的股價表現非常出色,取得了63%的優異漲幅。再往前看,該股去年上漲了60%,令人鼓舞。
儘管價格飆升,但Caesarstone目前可能仍在發出買入信號,其市銷率(或 “市盈率”)爲0.4倍,因爲美國建築行業幾乎有一半的公司的市銷率超過1.5倍,即使市盈率高於4倍也並非不尋常。但是,市銷率低可能是有原因的,需要進一步調查以確定其是否合理。
納斯達克GS: CSTE與行業的股價銷售比率2024年4月25日
Caesarstone的表現如何
Caesarstone最近表現不佳,其收入下降與其他公司相比表現不佳,後者的平均收入有所增長。看來許多人預計糟糕的收入表現將持續下去,這抑制了市銷率。如果是這樣的話,那麼現有股東可能很難對股價的未來走向感到興奮。
如果你想了解分析師對未來的預測,你應該查看我們關於凱撒斯通的免費報告。
收入預測與低市銷率相匹配嗎?
Caesarstone的市銷率對於一家預計增長有限,而且重要的是表現不如行業的公司來說是典型的。
回顧過去,去年的公司收入下降了18%,令人沮喪。無論如何,得益於較早的增長,總收入已成功地比三年前增長了16%。儘管這是一個坎坷的旅程,但可以公平地說,該公司最近的收入增長基本上是可觀的。
談到前景,明年的回報應該會減少,根據關注該公司的兩位分析師的估計,收入將下降6.3%。預計該行業將實現7.0%的增長,這是一個令人失望的結果。
考慮到這一點,我們發現Caesarstone的市銷率與業內同行非常接近,這很有趣。但是,從長遠來看,收入萎縮不太可能導致市銷率穩定。由於疲軟的前景壓低了股價,即使僅僅維持這些價格也可能難以實現。
Caesarstone的市銷率對投資者意味着什麼?
Caesarstone的股價最近飆升,但其市銷率仍然不高。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。
顯而易見,由於對收入下滑的預測不如預期,Caesarstone維持了較低的市銷率。目前,股東們正在接受低市銷率,因爲他們承認未來的收入可能不會帶來任何驚喜。除非這些條件有所改善,否則它們將繼續構成股價在這些水平附近的障礙。
我們不想在遊行隊伍中下太多雨,但我們也確實找到了一個你需要注意的Caesarstone警告標誌。
如果您不確定Caesarstone的業務實力,爲什麼不瀏覽我們的互動式股票清單,這些股票具有穩健的業務基本面是您可能錯過的其他公司。
對這篇文章有反饋嗎?對內容感到擔憂嗎?請直接聯繫我們。或者,也可以發送電子郵件至編輯團隊 (at) simplywallst.com。
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。