You may think that with a price-to-sales (or "P/S") ratio of 0.4x Liberty Latin America Ltd. (NASDAQ:LILA) is a stock worth checking out, seeing as almost half of all the Telecom companies in the United States have P/S ratios greater than 1.4x 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.
How Has Liberty Latin America Performed Recently?
The recently shrinking revenue for Liberty Latin America has been in line with the industry. It might be that many expect the company's revenue performance to degrade further, which has repressed the P/S. If you still like the company, you'd want its revenue trajectory to turn around before making any decisions. At the very least, you'd be hoping that revenue doesn't fall off a cliff if your plan is to pick up some stock while it's out of favour.
Keen to find out how analysts think Liberty Latin America's future stacks up against the industry? In that case, our free report is a great place to start.
How Is Liberty Latin America's Revenue Growth Trending?
Liberty Latin America's P/S ratio would be typical for a company that's only expected to deliver limited growth, and importantly, perform worse than the industry.
In reviewing the last year of financials, we were disheartened to see the company's revenues fell to the tune of 2.1%. Unfortunately, that's brought it right back to where it started three years ago with revenue growth being virtually non-existent overall during that time. So it appears to us that the company has had a mixed result in terms of growing revenue over that time.
Looking ahead now, revenue is anticipated to climb by 2.4% during the coming year according to the six analysts following the company. That's shaping up to be materially lower than the 54% growth forecast for the broader industry.
With this information, we can see why Liberty Latin America is trading at a P/S lower than the industry. It seems most investors are expecting to see limited future growth and are only willing to pay a reduced amount for the stock.
What We Can Learn From Liberty Latin America's P/S?
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.
As expected, our analysis of Liberty Latin America's analyst forecasts confirms that the company's underwhelming revenue outlook is a major contributor to its low P/S. Shareholders' pessimism on the revenue prospects for the company seems to be the main contributor to the depressed P/S. It's hard to see the share price rising strongly in the near future under these circumstances.
A lot of potential risks can sit within a company's balance sheet. Our free balance sheet analysis for Liberty Latin America with six simple checks will allow you to discover any risks that could be an issue.
If you're unsure about the strength of Liberty Latin America'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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你可能會認爲,Liberty Latin America Ltd.(納斯達克股票代碼:LILA)的市銷率(或 「市盈率」)爲0.4倍,這是一隻值得一看的股票,因爲美國幾乎有一半的電信公司的市銷率大於1.4倍,即使市盈率高於4倍也並非不尋常。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。
Liberty Latin America 最近的表現如何?
Liberty Latin America最近收入的萎縮與該行業一致。可能是許多人預計該公司的收入表現將進一步下降,這抑制了市銷率。如果你仍然喜歡該公司,在做出任何決定之前,你會希望其收入軌跡得到扭轉。至少,如果你的計劃是在股票失寵的時候買入一些股票,那麼你希望收入不會從懸崖上掉下來。
想了解分析師如何看待Liberty Latin America的未來與該行業的對立嗎?在這種情況下,我們的免費報告是一個很好的起點。
Liberty Latin America的收入增長趨勢如何?
Liberty Latin America的市銷率對於一家預計增長有限,而且重要的是表現不如行業的公司來說是典型的。