Unfortunately for some shareholders, the American Well Corporation (NYSE:AMWL) share price has dived 25% in the last thirty days, prolonging recent pain. The recent drop completes a disastrous twelve months for shareholders, who are sitting on a 83% loss during that time.
Since its price has dipped substantially, American Well may be sending buy signals at present with its price-to-sales (or "P/S") ratio of 0.5x, considering almost half of all companies in the Healthcare Services industry in the United States have P/S ratios greater than 2.2x and even P/S higher than 6x 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.
NYSE:AMWL Price to Sales Ratio vs Industry June 2nd 2024
What Does American Well's P/S Mean For Shareholders?
American Well 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. The P/S ratio is probably low because investors think this poor revenue performance isn't going to get any better. 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 American Well.
How Is American Well's Revenue Growth Trending?
The only time you'd be truly comfortable seeing a P/S as low as American Well's is when the company's growth is on track to lag the industry.
Taking a look back first, the company's revenue growth last year wasn't something to get excited about as it posted a disappointing decline of 8.1%. This has erased any of its gains during the last three years, with practically no change in revenue being achieved in total. Therefore, it's fair to say that revenue growth has been inconsistent recently for the company.
Looking ahead now, revenue is anticipated to climb by 14% per year during the coming three years according to the twelve analysts following the company. That's shaping up to be similar to the 12% each year growth forecast for the broader industry.
In light of this, it's peculiar that American Well's P/S sits below the majority of other companies. It may be that most investors are not convinced the company can achieve future growth expectations.
The Key Takeaway
The southerly movements of American Well's shares means its P/S is now sitting at a pretty low level. 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.
Our examination of American Well's revealed that its P/S remains low despite analyst forecasts of revenue growth matching the wider industry. The low P/S could be an indication that the revenue growth estimates are being questioned by the market. However, if you agree with the analysts' forecasts, you may be able to pick up the stock at an attractive price.
We don't want to rain on the parade too much, but we did also find 3 warning signs for American Well that you need to be mindful of.
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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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.
對一些股東來說,不幸的是,American Well Corporation(紐約證券交易所代碼:AMWL)的股價在過去三十天裏暴跌了25%,延長了近期的痛苦。 對於股東來說,最近的下跌結束了災難性的十二個月,在此期間,股東虧損了83%。
由於其價格大幅下跌,美國韋爾目前可能正在發出買入信號,其市銷率(或 “市盈率”)爲0.5倍,因爲美國醫療服務行業幾乎有一半的公司市盈率超過2.2倍,即使市盈率高於6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。
紐約證券交易所:AMWL 與行業的股價銷售比率 2024 年 6 月 2 日
美國油井的市銷率對股東意味着什麼?
American Well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。市銷率可能很低,因爲投資者認爲這種糟糕的收入表現不會好轉。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American Well的免費報告。
American Well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美國韋爾一樣低的市銷率。
首先回顧一下,該公司去年的收入增長並不令人興奮,因爲它公佈了令人失望的8.1%的跌幅。這抹去了其在過去三年中的任何收益,總收入幾乎沒有變化。因此,可以公平地說,該公司最近的收入增長一直不穩定。
展望未來,根據關注該公司的十二位分析師的說法,預計未來三年收入將每年增長14%。這將與整個行業每年12%的增長預測相似。
有鑑於此,奇怪的是,美國韋爾的市銷率低於其他多數公司。可能是大多數投資者不相信公司能夠實現未來的增長預期。
關鍵要點
美國韋爾股價向南走勢意味着其市銷率目前處於相當低的水平。有人認爲,在某些行業中,市銷率是衡量價值的較差指標,但它可以是一個有力的商業信心指標。
我們對American Well's的審查顯示,儘管分析師預測收入增長將與整個行業相匹配,但其市銷率仍然很低。低市銷率可能表明收入增長預期受到市場的質疑。但是,如果你同意分析師的預測,你也許能夠以誘人的價格買入股票。
我們不想在遊行隊伍中下太多雨,但我們也確實發現了 American Well 的 3 個警告標誌,你需要注意。
當然,具有良好收益增長曆史的盈利公司通常是更安全的選擇。因此,您可能希望看到這些免費收集的市盈率合理且收益增長強勁的其他公司。
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。