Plus Group Holdings Inc. (HKG:2486) shares have had a really impressive month, gaining 34% after a shaky period beforehand. Longer-term shareholders would be thankful for the recovery in the share price since it's now virtually flat for the year after the recent bounce.
In spite of the firm bounce in price, there still wouldn't be many who think Plus Group Holdings' price-to-sales (or "P/S") ratio of 0.5x is worth a mention when the median P/S in Hong Kong's Media industry is similar at about 0.7x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.
SEHK:2486 Price to Sales Ratio vs Industry May 7th 2024
How Plus Group Holdings Has Been Performing
Plus Group Holdings has been doing a good job lately as it's been growing revenue at a solid pace. Perhaps the market is expecting future revenue performance to only keep up with the broader industry, which has keeping the P/S in line with expectations. 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.
We don't have analyst forecasts, but you can see how recent trends are setting up the company for the future by checking out our free report on Plus Group Holdings' earnings, revenue and cash flow.
Do Revenue Forecasts Match The P/S Ratio?
There's an inherent assumption that a company should be matching the industry for P/S ratios like Plus Group Holdings' to be considered reasonable.
Retrospectively, the last year delivered an exceptional 17% gain to the company's top line. The latest three year period has also seen an excellent 76% overall rise in revenue, aided by its short-term performance. Accordingly, shareholders would have definitely welcomed those medium-term rates of revenue growth.
Comparing that to the industry, which is only predicted to deliver 11% growth in the next 12 months, the company's momentum is stronger based on recent medium-term annualised revenue results.
In light of this, it's curious that Plus Group Holdings' P/S sits in line with the majority of other companies. Apparently some shareholders believe the recent performance is at its limits and have been accepting lower selling prices.
What We Can Learn From Plus Group Holdings' P/S?
Plus Group Holdings' stock has a lot of momentum behind it lately, which has brought its P/S level with the rest of the industry. 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.
We've established that Plus Group Holdings currently trades on a lower than expected P/S since its recent three-year growth is higher than the wider industry forecast. It'd be fair to assume that potential risks the company faces could be the contributing factor to the lower than expected P/S. At least the risk of a price drop looks to be subdued if recent medium-term revenue trends continue, but investors seem to think future revenue could see some volatility.
Having said that, be aware Plus Group Holdings is showing 3 warning signs in our investment analysis, you should know about.
If you're unsure about the strength of Plus Group Holdings' business, why not explore our interactive list of stocks with solid business fundamentals for some other companies you may have missed.
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.
Plus Group Holdings Inc.(HKG: 2486)的股价表现非常令人印象深刻,在经历了动荡时期之后上涨了34%。长期股东将对股价的回升表示感谢,因为在最近的反弹之后的一年中,股价几乎持平。
尽管价格稳步反弹,但当香港媒体行业的市盈率中位数约为0.7倍时,仍然没有多少人认为Plus Group Holdings的0.5倍市销率(或 “市盈率”)值得一提。但是,如果市销率没有合理的基础,投资者可能会忽略明显的机会或潜在的挫折。
SEHK: 2486 与行业的股价销售比率 2024 年 5 月 7 日
Plus Group Holdings的表现如何
Plus Group Holdings最近表现不错,收入一直在稳步增长。也许市场预计未来的收入表现只能跟上整个行业的步伐,这使市销售率与预期一致。如果你喜欢这家公司,你希望情况并非如此,这样你就有可能在它不太受青睐的情况下买入一些股票。
我们没有分析师的预测,但您可以查看我们关于Plus Group Holdings收益、收入和现金流的免费报告,了解最近的趋势如何为公司未来做好准备。
收入预测与市销率相匹配吗?
人们固有的假设是,公司应该与行业相提并论,这样Plus Group Holdings这样的市销率才算合理。
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