The Sezzle Inc. (NASDAQ:SEZL) share price has softened a substantial 31% over the previous 30 days, handing back much of the gains the stock has made lately. Longer-term shareholders will rue the drop in the share price, since it's now virtually flat for the year after a promising few quarters.
Even after such a large drop in price, Sezzle may still be sending buy signals at present with its price-to-sales (or "P/S") ratio of 1.9x, considering almost half of all companies in the Diversified Financial industry in the United States have P/S ratios greater than 2.5x and even P/S higher than 5x aren't out of the ordinary. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's limited.
NasdaqCM:SEZL Price to Sales Ratio vs Industry April 25th 2024
How Has Sezzle Performed Recently?
Revenue has risen firmly for Sezzle recently, which is pleasing to see. It might be that many expect the respectable revenue performance to degrade substantially, which has repressed the P/S. 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.
Although there are no analyst estimates available for Sezzle, take a look at this free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.
How Is Sezzle's Revenue Growth Trending?
The only time you'd be truly comfortable seeing a P/S as low as Sezzle's is when the company's growth is on track to lag the industry.
Retrospectively, the last year delivered an exceptional 27% gain to the company's top line. The latest three year period has also seen an excellent 171% overall rise in revenue, aided by its short-term performance. Therefore, it's fair to say the revenue growth recently has been superb for the company.
When compared to the industry's one-year growth forecast of 1.3%, the most recent medium-term revenue trajectory is noticeably more alluring
In light of this, it's peculiar that Sezzle's P/S sits below the majority of other companies. Apparently some shareholders believe the recent performance has exceeded its limits and have been accepting significantly lower selling prices.
The Bottom Line On Sezzle's P/S
The southerly movements of Sezzle's shares means its P/S is now sitting at a pretty low level. Typically, we'd caution against reading too much into price-to-sales ratios when settling on investment decisions, though it can reveal plenty about what other market participants think about the company.
Our examination of Sezzle revealed its three-year revenue trends aren't boosting its P/S anywhere near as much as we would have predicted, given they look better than current industry expectations. When we see robust revenue growth that outpaces the industry, we presume that there are notable underlying risks to the company's future performance, which is exerting downward pressure on the P/S ratio. While recent revenue trends over the past medium-term suggest that the risk of a price decline is low, investors appear to perceive a likelihood of revenue fluctuations in the future.
There are also other vital risk factors to consider and we've discovered 4 warning signs for Sezzle (3 are a bit concerning!) that you should be aware of before investing here.
If these risks are making you reconsider your opinion on Sezzle, explore our interactive list of high quality stocks to get an idea of what else is out there.
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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.
Sezzle Inc.(納斯達克股票代碼:SEZL)的股價在過去30天中大幅下跌了31%,收回了該股最近的大部分漲幅。長期股東將爲股價的下跌感到遺憾,因爲在經歷了幾個令人鼓舞的季度之後,今年的股價幾乎持平。
即使在價格大幅下跌之後,Sezzle目前可能仍在發出買入信號,其市銷率(或 “市盈率”)爲1.9倍,因爲美國多元化金融行業幾乎有一半的公司的市盈率超過2.5倍,即使市盈率高於5倍也並非不尋常。但是,僅按面值計算市銷率是不明智的,因爲可以解釋其有限的原因。
納斯達克股票代碼:SEZL 與行業的股價銷售比率 2024 年 4 月 25 日
Sezzle 最近表現如何?
最近,Sezzle的收入穩步增長,這令人高興。許多人可能預計,可觀的收入表現將大幅下降,這抑制了市銷率。如果你喜歡這家公司,你會希望情況並非如此,這樣你就有可能在股票失寵的時候買入一些股票。
儘管沒有分析師對Sezzle的估計,但請看一下這個數據豐富的免費可視化工具,看看該公司在收益、收入和現金流方面的積累情況。
Sezzle 的收入增長趨勢如何?
只有當公司的增長有望落後於該行業時,你才能真正放心地看到像Sezzle一樣低的市銷率。
回顧過去,去年的公司收入實現了27%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171%的出色增長。因此,可以公平地說,該公司最近的收入增長非常好。
與該行業1.3%的年度增長預測相比,最新的中期收入軌跡明顯更具吸引力
有鑑於此,奇怪的是,Sezzle的市銷率低於其他多數公司。顯然,一些股東認爲最近的表現已經超過了極限,並且一直在接受大幅降低的銷售價格。
Sezzle 市銷率的底線
Sezzle股價向南走勢意味着其市銷率目前處於相當低的水平。通常,在做出投資決策時,我們謹慎行事,不要過多地考慮市售比率,儘管這可以揭示其他市場參與者對公司的看法。
我們對Sezzle的審查顯示,鑑於其三年收入趨勢看起來好於當前的行業預期,其市銷率的提高幅度沒有我們預期的那麼大。當我們看到強勁的收入增長超過行業時,我們認爲公司的未來業績存在明顯的潛在風險,這給市銷率帶來了下行壓力。儘管過去中期最近的收入趨勢表明價格下跌的風險很低,但投資者似乎認爲未來收入可能會出現波動。
還有其他重要的風險因素需要考慮,我們已經發現了 Sezzle 的 4 個警告信號(3 個有點令人擔憂!)在這裏投資之前,您應該注意這一點。
如果這些風險讓你重新考慮你對Sezzle的看法,請瀏覽我們的高質量股票互動清單,了解還有什麼。
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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。