UiPath Inc. (NYSE:PATH) shareholders that were waiting for something to happen have been dealt a blow with a 45% share price drop in the last month. The drop over the last 30 days has capped off a tough year for shareholders, with the share price down 31% in that time.
In spite of the heavy fall in price, you could still be forgiven for feeling indifferent about UiPath's P/S ratio of 4.8x, since the median price-to-sales (or "P/S") ratio for the Software industry in the United States is also close to 4.1x. Although, it's not wise to simply ignore the P/S without explanation as investors may be disregarding a distinct opportunity or a costly mistake.
NYSE:PATH Price to Sales Ratio vs Industry June 20th 2024
How UiPath Has Been Performing
With revenue growth that's superior to most other companies of late, UiPath has been doing relatively well. It might be that many expect the strong revenue performance to wane, which has kept the P/S ratio from rising. If not, then existing shareholders have reason to be feeling optimistic about the future direction of the share price.
If you'd like to see what analysts are forecasting going forward, you should check out our free report on UiPath.
Is There Some Revenue Growth Forecasted For UiPath?
In order to justify its P/S ratio, UiPath would need to produce growth that's similar to the industry.
Retrospectively, the last year delivered an exceptional 23% gain to the company's top line. The latest three year period has also seen an excellent 99% 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.
Looking ahead now, revenue is anticipated to climb by 11% each year during the coming three years according to the analysts following the company. With the industry predicted to deliver 15% growth per year, the company is positioned for a weaker revenue result.
With this in mind, we find it intriguing that UiPath's P/S is closely matching its industry peers. It seems most investors are ignoring the fairly limited growth expectations and are willing to pay up for exposure to the stock. These shareholders may be setting themselves up for future disappointment if the P/S falls to levels more in line with the growth outlook.
What Does UiPath's P/S Mean For Investors?
Following UiPath's share price tumble, its P/S is just clinging on to the industry median P/S. Generally, our preference is to limit the use of the price-to-sales ratio to establishing what the market thinks about the overall health of a company.
Given that UiPath's revenue growth projections are relatively subdued in comparison to the wider industry, it comes as a surprise to see it trading at its current P/S ratio. When we see companies with a relatively weaker revenue outlook compared to the industry, we suspect the share price is at risk of declining, sending the moderate P/S lower. This places shareholders' investments at risk and potential investors in danger of paying an unnecessary premium.
We don't want to rain on the parade too much, but we did also find 3 warning signs for UiPath that you need to be mindful of.
Of course, profitable companies with a history of great earnings growth are generally safer bets. So you may wish to see this free collection of other companies that have reasonable P/E ratios and have grown earnings strongly.
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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.
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UiPath Inc. (纽约证券交易所代码:PATH)的股东们正等待着一些事情的发生,但却遭到了打击,在过去的一个月里,该公司的股价下跌了45%。过去30天的下跌结束了股东艰难的一年,当时股价下跌了31%。
尽管价格大幅下跌,但您对UiPath的4.8倍市盈率漠不关心仍然是可以原谅的,因为美国软件行业的中位市销率(或 “市盈率”)也接近4.1倍。但是,不加解释地忽略市销率是不明智的,因为投资者可能会忽视一个明显的机会或一个代价高昂的错误。
纽约证券交易所:PATH 与行业的股价销售比率 2024 年 6 月 20 日
UiPath 的表现如何
UiPath的收入增长最近优于大多数其他公司,因此表现相对较好。许多人可能预计强劲的收入表现将减弱,这阻碍了市销率的上升。如果不是,那么现有股东就有理由对股价的未来走向感到乐观。
如果你想了解分析师对未来的预测,你应该查看我们关于UiPath的免费报告。
预计UiPath的收入会增长吗?
为了证明其市销率是合理的,UiPath需要实现与行业相似的增长。
回顾过去,去年的公司收入实现了23%的惊人增长。在短期表现的推动下,最近三年的总体收入也实现了99%的出色增长。因此,我们可以首先确认该公司在这段时间内在增加收入方面做得很好。
根据关注该公司的分析师的说法,展望未来,收入预计将在未来三年内每年增长11%。预计该行业每年将实现15%的增长,因此该公司的收入业绩将疲软。
考虑到这一点,我们发现有趣的是,UiPath的市销率与业内同行非常接近。看来大多数投资者无视相当有限的增长预期,愿意为股票敞口付出代价。如果市销率降至更符合增长前景的水平,这些股东可能会为未来的失望做好准备。
UiPath的市销率对投资者意味着什么?
在UiPath股价暴跌之后,其市盈率仅保持行业中位数。通常,我们倾向于限制使用市销比来确定市场对公司整体健康状况的看法。
鉴于与整个行业相比,UiPath的收入增长预测相对疲软,看到其目前的市销率交易令人惊讶。当我们看到与该行业相比收入前景相对疲软的公司时,我们怀疑股价有下跌的风险,从而使温和的市销售率走低。这使股东的投资处于风险之中,潜在投资者面临支付不必要的溢价的危险。
我们不想在游行队伍中下太多雨,但我们也发现了 UiPath 的 3 个警告标志,你需要注意。
当然,具有良好收益增长历史的盈利公司通常是更安全的选择。因此,您可能希望看到这些免费收集的市盈率合理且收益增长强劲的其他公司。
对这篇文章有反馈吗?对内容感到担忧吗?请直接联系我们。或者,也可以发送电子邮件至编辑团队 (at) simplywallst.com。
Simply Wall St的这篇文章本质上是笼统的。我们仅使用公正的方法根据历史数据和分析师的预测提供评论,我们的文章无意作为财务建议。它不构成买入或卖出任何股票的建议,也没有考虑到您的目标或财务状况。我们的目标是为您提供由基本数据驱动的长期重点分析。请注意,我们的分析可能不考虑最新的价格敏感型公司公告或定性材料。简而言之,华尔街没有持有任何上述股票的头寸。
对这篇文章有反馈吗?担心内容吗?直接联系我们。或者,发送电子邮件至 editorial-team@simplywallst.com