To the annoyance of some shareholders, Treace Medical Concepts, Inc. (NASDAQ:TMCI) shares are down a considerable 39% in the last month, which continues a horrid run for the company. For any long-term shareholders, the last month ends a year to forget by locking in a 74% share price decline.
Since its price has dipped substantially, Treace Medical Concepts' price-to-sales (or "P/S") ratio of 2.2x might make it look like a buy right now compared to the Medical Equipment industry in the United States, where around half of the companies have P/S ratios above 3x and even P/S above 6x are quite common. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's limited.
Check out our latest analysis for Treace Medical Concepts
NasdaqGS:TMCI Price to Sales Ratio vs Industry November 13th 2023
What Does Treace Medical Concepts' P/S Mean For Shareholders?
Recent times have been advantageous for Treace Medical Concepts as its revenues have been rising faster than most other companies. It might be that many expect the strong revenue performance to degrade substantially, which has repressed the share price, and thus the P/S ratio. 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 out of favour.
Want the full picture on analyst estimates for the company? Then our free report on Treace Medical Concepts will help you uncover what's on the horizon.
Do Revenue Forecasts Match The Low P/S Ratio?
There's an inherent assumption that a company should underperform the industry for P/S ratios like Treace Medical Concepts' to be considered reasonable.
Retrospectively, the last year delivered an exceptional 39% gain to the company's top line. The latest three year period has also seen an excellent 204% overall rise in revenue, aided by its short-term performance. So we can start by confirming that the company has done a great job of growing revenue over that time.
Turning to the outlook, the next three years should generate growth of 21% each year as estimated by the seven analysts watching the company. With the industry only predicted to deliver 11% per year, the company is positioned for a stronger revenue result.
With this in consideration, we find it intriguing that Treace Medical Concepts' P/S sits behind most of its industry peers. Apparently some shareholders are doubtful of the forecasts and have been accepting significantly lower selling prices.
The Key Takeaway
Treace Medical Concepts' P/S has taken a dip along with its share price. We'd say the price-to-sales ratio's power isn't primarily as a valuation instrument but rather to gauge current investor sentiment and future expectations.
Treace Medical Concepts' analyst forecasts revealed that its superior revenue outlook isn't contributing to its P/S anywhere near as much as we would have predicted. When we see strong growth forecasts like this, we can only assume potential risks are what might be placing significant pressure on the P/S ratio. It appears the market could be anticipating revenue instability, because these conditions should normally provide a boost to the share price.
And what about other risks? Every company has them, and we've spotted 3 warning signs for Treace Medical Concepts you should know about.
If companies with solid past earnings growth is up your alley, you may wish to see this free collection of other companies with strong earnings growth and low P/E ratios.
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令一些股东烦恼的是,Treace Medical Concepts, Inc.(纳斯达克股票代码:TMCI)的股价在上个月大幅下跌了39%,这延续了该公司的糟糕表现。对于任何长期股东来说,最后一个月的股价下跌幅度为74%,这让人忘记了一年。
由于其价格已大幅下跌,与美国的医疗设备行业相比,Treace Medical Concepts的2.2倍市盈率(或 “市盈率”)可能使其现在看起来像买入。在美国,大约有一半的公司的市盈率超过3倍,甚至市盈率也高于6倍也很常见。但是,仅按面值计算市盈率是不明智的,因为可能有其局限性的解释。
查看我们对Treace Medical Concepts的最新分析
纳斯达克股票代码:TMCI 市销比率与行业的对比 2023 年 11 月 13 日
Treace Medical Concepts的市盈率对股东意味着什么?
最近对Treace Medical Concepts来说是有利的,因为其收入的增长速度比大多数其他公司都要快。许多人可能预计强劲的收入表现将大幅下降,这抑制了股价,从而抑制了市盈率。如果你喜欢这家公司,你会希望情况并非如此,这样你就有可能在失宠的时候买入一些股票。
想全面了解分析师对公司的估计?然后,我们关于Treace Medical Concepts的免费报告将帮助你发现即将发生的事情。
收入预测是否与低市盈率相符?
有一种固有的假设是,如果像Treace Medical Concepts这样的市盈率被认为是合理的,一家公司的表现应该低于该行业。