TuanChe Limited (NASDAQ:TC) shares have had a really impressive month, gaining 33% after a shaky period beforehand. Still, the 30-day jump doesn't change the fact that longer term shareholders have seen their stock decimated by the 71% share price drop in the last twelve months.
Although its price has surged higher, given about half the companies operating in the United States' Media industry have price-to-sales ratios (or "P/S") above 1.1x, you may still consider TuanChe as an attractive investment with its 0.2x P/S ratio. 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:TC Price to Sales Ratio vs Industry May 23rd 2024
What Does TuanChe's P/S Mean For Shareholders?
For example, consider that TuanChe's financial performance has been poor lately as its revenue has been in decline. Perhaps the market believes the recent revenue performance isn't good enough to keep up the industry, causing the P/S ratio to suffer. Those who are bullish on TuanChe will be hoping that this isn't the case so that they can pick up the stock at a lower valuation.
Although there are no analyst estimates available for TuanChe, take a look at this free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.
Is There Any Revenue Growth Forecasted For TuanChe?
There's an inherent assumption that a company should underperform the industry for P/S ratios like TuanChe's to be considered reasonable.
Retrospectively, the last year delivered a frustrating 11% decrease to the company's top line. The last three years don't look nice either as the company has shrunk revenue by 51% in aggregate. Accordingly, shareholders would have felt downbeat about the medium-term rates of revenue growth.
Comparing that to the industry, which is predicted to deliver 4.6% growth in the next 12 months, the company's downward momentum based on recent medium-term revenue results is a sobering picture.
With this in mind, we understand why TuanChe's P/S is lower than most of its industry peers. However, we think shrinking revenues are unlikely to lead to a stable P/S over the longer term, which could set up shareholders for future disappointment. Even just maintaining these prices could be difficult to achieve as recent revenue trends are already weighing down the shares.
The Bottom Line On TuanChe's P/S
Despite TuanChe's share price climbing recently, its P/S still lags most other companies. 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.
As we suspected, our examination of TuanChe revealed its shrinking revenue over the medium-term is contributing to its low P/S, given the industry is set to grow. At this stage investors feel the potential for an improvement in revenue isn't great enough to justify a higher P/S ratio. Given the current circumstances, it seems unlikely that the share price will experience any significant movement in either direction in the near future if recent medium-term revenue trends persist.
We don't want to rain on the parade too much, but we did also find 4 warning signs for TuanChe (2 can't be ignored!) that you need to be mindful of.
If you're unsure about the strength of TuanChe'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.
TuanChe Limited(納斯達克股票代碼:TC)的股價表現非常令人印象深刻,在經歷了動盪時期之後上漲了33%。儘管如此,30天的上漲並沒有改變這樣一個事實,即在過去十二個月中,長期股東的股票因股價下跌71%而暴跌。
儘管其價格飆升,但鑑於在美國媒體行業運營的公司中約有一半的市銷率(或 “市銷率”)高於1.1倍,您仍然可以將TuanChe視爲具有0.2倍市銷率的有吸引力的投資。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:TC 與行業的股價銷售比率 2024 年 5 月 23 日
團車的市銷率對股東意味着什麼?
例如,假設TuanChe最近由於收入下降而財務表現不佳。也許市場認爲最近的收入表現不足以維持該行業的步伐,從而導致市銷率受到影響。那些看好TuanChe的人會希望情況並非如此,這樣他們就可以以較低的估值買入股票。
儘管沒有分析師對TuanChe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。
TuanChe的收入預計會增長嗎?
人們固有的假設是,如果像TuanChe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。
回顧過去,去年該公司的收入下降了11%,令人沮喪。過去三年看起來也不太好,因爲該公司的總收入減少了51%。因此,股東會對中期收入增長率感到悲觀。
相比之下,該行業預計將在未來12個月內實現4.6%的增長,根據最近的中期收入業績,該公司的下滑勢頭令人震驚。
考慮到這一點,我們理解了爲何TuanChe的市銷率低於大部分行業同行。但是,我們認爲,從長遠來看,收入萎縮不太可能導致市銷率穩定,這可能會使股東爲未來的失望做好準備。即使僅僅維持這些價格也可能難以實現,因爲最近的收入趨勢已經壓低了股價。
TuanChe市銷率的底線
儘管TuanChe最近股價上漲,但其市銷率仍然落後於大多數其他公司。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。
正如我們所懷疑的那樣,我們對TuanChe的檢查顯示,鑑於該行業即將增長,其中期收入的萎縮是其低市銷售率的原因。在現階段,投資者認爲,收入改善的可能性不足以證明更高的市銷率是合理的。鑑於目前的情況,如果最近的中期收入趨勢持續下去,股價似乎不太可能在不久的將來雙向出現任何重大波動。
我們不想在遊行隊伍中下太多雨,但我們還發現了 TuanChe 的 4 個警告標誌(2 個不容忽視!)這是你需要注意的。
如果您不確定TuanChe的業務實力,爲什麼不瀏覽我們的交互式股票清單,其中列出了一些您可能錯過的其他公司,這些股票具有穩健的業務基本面。
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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。