Unfortunately for some shareholders, the Flux Power Holdings, Inc. (NASDAQ:FLUX) share price has dived 28% 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 13% in that time.
After such a large drop in price, Flux Power Holdings may be sending buy signals at present with its price-to-sales (or "P/S") ratio of 0.8x, considering almost half of all companies in the Electrical industry in the United States have P/S ratios greater than 1.6x and even P/S higher than 4x 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:FLUX Price to Sales Ratio vs Industry May 24th 2024
How Has Flux Power Holdings Performed Recently?
Flux Power 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 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 Flux Power Holdings.
Do Revenue Forecasts Match The Low P/S Ratio?
The only time you'd be truly comfortable seeing a P/S as low as Flux Power Holdings' is when the company's growth is on track to lag the industry.
Retrospectively, the last year delivered a frustrating 2.2% decrease to the company's top line. Even so, admirably revenue has lifted 164% 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.
Turning to the outlook, the next three years should generate growth of 26% per annum as estimated by the five analysts watching the company. That's shaping up to be materially lower than the 45% per year growth forecast for the broader industry.
With this in consideration, its clear as to why Flux Power Holdings' P/S is falling short industry peers. Apparently many shareholders weren't comfortable holding on while the company is potentially eyeing a less prosperous future.
What We Can Learn From Flux Power Holdings' P/S?
Flux Power Holdings' recently weak share price has pulled its P/S back below other Electrical companies. It's argued the price-to-sales ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator.
As expected, our analysis of Flux Power Holdings' analyst forecasts confirms that the company's underwhelming revenue outlook is a major contributor to its low P/S. 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.
You need to take note of risks, for example - Flux Power Holdings has 4 warning signs (and 1 which is a bit unpleasant) we think you should know about.
Of course, profitable companies with a history of great earnings growth are generally safer bets. So you may wish to see this free collection of other companies that have reasonable P/E ratios and have grown earnings strongly.
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不幸的是,Flux Power Holdings, Inc.(納斯達克:FLUX)的股價在過去30天內下跌了28%,延續了最近的痛苦。在過去的一年中,股價下跌了13%,這對股東來說是一個又一個打擊。
在價格大幅下跌後,Flux Power Holdings的市銷率(或“P/S”)爲0.8倍,目前可能正在發出買入信號,考慮到美國電器行業近一半的公司市銷率高於1.6倍,甚至高於4倍也並不罕見。儘管如此,僅僅看市銷率不明智,因爲它可能受到限制的原因。
納斯達克:FLUX的市銷率與行業比較於2024年5月24日
Flux Power Holdings最近的表現如何?
Flux Power Holdings的營業收入近期一直在倒退,而大多數其他公司則一直看到積極的營收增長。看來許多人都預計營收表現不佳將會持續下去,這已抑制了市銷率。如果這種情況屬實,那麼現有股東可能會對股票未來的走向感到失望。
如果你想查看分析師對Flux Power Holdings的預測,可以查看我們關於該公司的免費報告。
營收預測與低市銷率是否匹配?
唯一一種你會真正舒適地看到像Flux Power Holdings這樣低市銷率的情況是當公司的增長正好能夠落後於行業。