There wouldn't be many who think Ardagh Metal Packaging S.A.'s (NYSE:AMBP) price-to-sales (or "P/S") ratio of 0.4x is worth a mention when the median P/S for the Packaging industry in the United States is similar at about 0.8x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.
NYSE:AMBP Price to Sales Ratio vs Industry June 20th 2024
How Has Ardagh Metal Packaging Performed Recently?
Ardagh Metal Packaging certainly has been doing a good job lately as its revenue growth has been positive while most other companies have been seeing their revenue go backwards. One possibility is that the P/S ratio is moderate because investors think the company's revenue will be less resilient moving forward. 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 not quite in favour.
Want the full picture on analyst estimates for the company? Then our free report on Ardagh Metal Packaging will help you uncover what's on the horizon.
Do Revenue Forecasts Match The P/S Ratio?
Ardagh Metal Packaging's P/S ratio would be typical for a company that's only expected to deliver moderate growth, and importantly, perform in line with the industry.
Taking a look back first, we see that the company managed to grow revenues by a handy 3.0% last year. Pleasingly, revenue has also lifted 35% in aggregate from three years ago, partly thanks to the last 12 months of growth. Accordingly, shareholders would have definitely welcomed those medium-term rates of revenue growth.
Looking ahead now, revenue is anticipated to climb by 4.3% during the coming year according to the six analysts following the company. Meanwhile, the rest of the industry is forecast to only expand by 1.3%, which is noticeably less attractive.
With this information, we find it interesting that Ardagh Metal Packaging is trading at a fairly similar P/S compared to the industry. It may be that most investors aren't convinced the company can achieve future growth expectations.
What Does Ardagh Metal Packaging's P/S Mean For Investors?
Using the price-to-sales ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects.
We've established that Ardagh Metal Packaging currently trades on a lower than expected P/S since its forecasted revenue growth is higher than the wider industry. When we see a strong revenue outlook, with growth outpacing the industry, we can only assume potential uncertainty around these figures are what might be placing slight pressure on the P/S ratio. This uncertainty seems to be reflected in the share price which, while stable, could be higher given the revenue forecasts.
Plus, you should also learn about these 2 warning signs we've spotted with Ardagh Metal Packaging.
It's important to make sure you look for a great company, not just the first idea you come across. So if growing profitability aligns with your idea of a great company, take a peek at this free list of interesting companies with strong recent earnings growth (and a low P/E).
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
當中位於美國的Packaging行業的市銷率約爲0.8x時,很少有人認爲Ardagh Metal Packaging S.A. (NYSE:AMBP)的市銷率爲0.4x值得一提。然而,如果沒有市銷率的合理基礎,投資者可能會忽視明顯的機會或潛在的挫敗。
2024年6月20日,NYSE: AMBP市銷率與行業比較
Ardagh Metal Packaging最近的表現如何?
Ardagh Metal Packaging近期業績表現良好,營業收入增長積極,而大多數其他公司營業收入則在下降。一個可能性是市銷率適中,因爲投資者認爲公司未來的營業收入將不那麼彈性。如果你喜歡這家公司,就希望這不是發生的情況,這樣你就可以在股票價格不太受歡迎的情況下,有可能撿了便宜。
想要獲取有關該公司的分析師預測的完整信息嗎?那麼我們提供的有關Ardagh Metal Packaging的免費報告將幫助您揭示未來的趨勢。
營業收入預測與市銷率是否匹配?
Ardagh Metal Packaging的市銷率與行業相比是典型的,預計僅能實現適度增長,並且重要的是與行業表現相符。
從該公司與整個行業的市銷率相比較,我們發現Ardagh Metal Packaging的市銷率相當。原因可能是大多數投資者並不相信該公司能夠實現未來的增長預期。
Ardagh Metal Packaging的市銷率對投資者意味着什麼?
僅僅使用市銷率來判斷您是否應該出售自己的股票是不明智的,但它可以作爲公司未來前景的實用指南。
我們已經確定Ardagh Metal Packaging目前的市銷率低於預期,因爲預測的營業收入增長率高於整個行業。當我們看到強勁的收入前景,增長超過整個行業時,我們只能假設這些數字周圍的潛在不確定性是在施加輕微的市銷率壓力。這種不確定性似乎反映在股票價格上,雖然穩定,但是鑑於營業收入的預測,股票價格可能會更高。