Unfortunately for some shareholders, the KLX Energy Services Holdings, Inc. (NASDAQ:KLXE) share price has dived 30% in the last thirty days, prolonging recent pain. The drop over the last 30 days has capped off a tough year for shareholders, with the share price down 41% in that time.
Since its price has dipped substantially, considering around half the companies operating in the United States' Energy Services industry have price-to-sales ratios (or "P/S") above 1x, you may consider KLX Energy Services Holdings as an solid investment opportunity with its 0.1x 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.
NasdaqGS:KLXE Price to Sales Ratio vs Industry May 23rd 2024
What Does KLX Energy Services Holdings' Recent Performance Look Like?
KLX Energy Services Holdings could be doing better as its revenue has been going backwards lately while most other companies have been seeing positive revenue growth. It seems that many are expecting the poor revenue performance to persist, which has repressed the P/S ratio. If you still 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.
If you'd like to see what analysts are forecasting going forward, you should check out our free report on KLX Energy Services Holdings.
Do Revenue Forecasts Match The Low P/S Ratio?
In order to justify its P/S ratio, KLX Energy Services Holdings would need to produce sluggish growth that's trailing the industry.
Retrospectively, the last year delivered a frustrating 5.2% decrease to the company's top line. Even so, admirably revenue has lifted 189% in aggregate from three years ago, notwithstanding the last 12 months. So we can start by confirming that the company has generally done a very good job of growing revenue over that time, even though it had some hiccups along the way.
Shifting to the future, estimates from the two analysts covering the company suggest revenue growth is heading into negative territory, declining 6.9% over the next year. That's not great when the rest of the industry is expected to grow by 11%.
With this information, we are not surprised that KLX Energy Services Holdings is trading at a P/S lower than the industry. However, shrinking revenues are unlikely to lead to a stable P/S over the longer term. There's potential for the P/S to fall to even lower levels if the company doesn't improve its top-line growth.
The Key Takeaway
KLX Energy Services Holdings' recently weak share price has pulled its P/S back below other Energy Services companies. While the price-to-sales ratio shouldn't be the defining factor in whether you buy a stock or not, it's quite a capable barometer of revenue expectations.
With revenue forecasts that are inferior to the rest of the industry, it's no surprise that KLX Energy Services Holdings' P/S is on the lower end of the spectrum. At this stage investors feel the potential for an improvement in revenue isn't great enough to justify a higher P/S ratio. 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 4 warning signs for KLX Energy Services Holdings (1 is concerning!) that you need to be mindful of.
If these risks are making you reconsider your opinion on KLX Energy Services Holdings, explore our interactive list of high quality stocks to get an idea of what else is out there.
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.
對於一些股東來說，不幸的是，KLX Energy Services Holdings, Inc.(納斯達克股票代碼:KLXE)的股價在過去三十天裏已經跳水30%，延長了近期的痛苦。 過去30天的下跌結束了股東艱難的一年，當時股價下跌了41％。
由於其價格已大幅下跌，考慮到在美國能源服務行業運營的公司中約有一半的市銷率（或 “市銷率”）高於1倍，您可以將KLX能源服務控股公司的市銷率視爲穩健的投資機會，其市銷率爲0.1倍。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GS: KLXE 與行業的股價銷售比率 2024 年 5 月 23 日
KLX Energy Services Holdings的近期表現如何？
KLX Energy Services Holdings的表現可能會更好，因爲其收入最近一直在倒退，而大多數其他公司的收入卻出現了正增長。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。如果你仍然喜歡這家公司，你希望情況並非如此，這樣你就有可能在它失寵的時候買入一些股票。
如果你想了解分析師對未來的預測，你應該查看我們關於KLX能源服務控股公司的免費報告。
收入預測與低市銷率相匹配嗎？
爲了證明其市銷率是合理的，KLX Energy Services Holdings需要實現落後於該行業的緩慢增長。
回顧過去，去年該公司的收入下降了令人沮喪的5.2％。即便如此，儘管過去12個月，但總收入仍比三年前增長了189％，令人欽佩。因此，我們可以首先確認該公司在此期間在增加收入方面總體上做得非常出色，儘管在此過程中遇到了一些小問題。
展望未來，報道該公司的兩位分析師的估計表明，收入增長將進入負值區間，明年下降6.9％。當該行業的其他部門預計將增長11％時，情況就不太好了。
有了這些信息，KLX能源服務控股公司的市銷售率低於該行業也就不足爲奇了。但是，從長遠來看，收入萎縮不太可能導致市銷率穩定。如果公司不改善營收增長，市銷率有可能降至更低的水平。
關鍵要點
KLX能源服務控股公司最近疲軟的股價使其市銷率回落至其他能源服務公司的下方。儘管市銷率不應該成爲決定你是否買入股票的決定性因素，但它是衡量收入預期的有力晴雨表。
由於收入預測低於該行業的其他部門，KLX Energy Services Holdings的市銷率處於較低水平也就不足爲奇了。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。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，但我們還發現了 KLX 能源服務控股公司的 4 個警告標誌（1 個令人擔憂！）你需要注意的。
如果這些風險讓你重新考慮你對KLX Energy Services Holdings的看法，請瀏覽我們的互動式高質量股票清單，了解還有什麼。
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。
