When you see that almost half of the companies in the Healthcare industry in the United States have price-to-sales ratios (or "P/S") above 1.1x, Pediatrix Medical Group, Inc. (NYSE:MD) looks to be giving off some buy signals with its 0.3x P/S ratio. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the reduced P/S.
What Does Pediatrix Medical Group's P/S Mean For Shareholders?
Pediatrix Medical Group could be doing better as it's been growing revenue less than most other companies lately. The P/S ratio is probably low because investors think this lacklustre revenue performance isn't going to get any better. If you still like the company, you'd be hoping revenue doesn't get any worse and that you could pick up some stock while it's out of favour.
If you'd like to see what analysts are forecasting going forward, you should check out our free report on Pediatrix Medical Group.
How Is Pediatrix Medical Group's Revenue Growth Trending?
Pediatrix Medical Group'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.
Taking a look back first, we see that there was hardly any revenue growth to speak of for the company over the past year. Still, the latest three year period was better as it's delivered a decent 15% overall rise in revenue. Therefore, it's fair to say that revenue growth has been inconsistent recently for the company.
Shifting to the future, estimates from the seven analysts covering the company suggest revenue should grow by 1.3% over the next year. With the industry predicted to deliver 7.4% growth, the company is positioned for a weaker revenue result.
In light of this, it's understandable that Pediatrix Medical Group's P/S sits below the majority of other companies. Apparently many shareholders weren't comfortable holding on while the company is potentially eyeing a less prosperous future.
What Does Pediatrix Medical Group's P/S Mean For Investors?
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 we suspected, our examination of Pediatrix Medical Group's analyst forecasts revealed that its inferior revenue outlook is contributing 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. The company will need a change of fortune to justify the P/S rising higher in the future.
You always need to take note of risks, for example - Pediatrix Medical Group has 1 warning sign we think you should be aware of.
If you're unsure about the strength of Pediatrix Medical Group'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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当你看到美国医疗保健行业中近一半公司市销率(或"P/S")超过1.1倍时,纽交所(NYSE)的Pediatrix Medical Group, Inc.(NYSE: MD)似乎正在发出一些买入信号,其市销率仅为0.3倍。尽管如此,我们需要深入挖掘以判断减少P/S的合理依据。
Pediatrix Medical Group的市销率对股东意味着什么?
Pediatrix Medical Group的业务表现近来营收增长不及大多数其他公司。市销率可能较低是因为投资者认为这种平庸的营收表现不会有任何改善。如果你仍然喜欢这家公司,你会希望营业收入不会变得更糟,并且你可以在公司不被看好之际买入一些股票。
如果你想看看分析师预测未来的情况,你应该查看我们免费报告中对Pediatrix Medical Group的分析。
Pediatrix Medical Group的营业收入增长趋势如何?
Pediatrix Medical Group的市销率对于一家预期只能提供有限增长,且重要的是表现不如行业平均水平的公司来说是典型的。