Bandwidth Inc. (NASDAQ:BAND) shares have had a horrible month, losing 26% after a relatively good period beforehand. Looking back over the past twelve months the stock has been a solid performer regardless, with a gain of 25%.
Although its price has dipped substantially, there still wouldn't be many who think Bandwidth's price-to-sales (or "P/S") ratio of 0.7x is worth a mention when the median P/S in the United States' Telecom industry is similar at about 1.2x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.
NasdaqGS:BAND Price to Sales Ratio vs Industry June 22nd 2024
What Does Bandwidth's P/S Mean For Shareholders?
Bandwidth certainly has been doing a good job lately as its revenue growth has been positive while most other companies have been seeing their revenue go backwards. Perhaps the market is expecting its current strong performance to taper off in accordance to the rest of the industry, which has kept the P/S contained. If not, then existing shareholders have reason to be feeling optimistic about the future direction of the share price.
Want the full picture on analyst estimates for the company? Then our free report on Bandwidth will help you uncover what's on the horizon.
Is There Some Revenue Growth Forecasted For Bandwidth?
The only time you'd be comfortable seeing a P/S like Bandwidth's is when the company's growth is tracking the industry closely.
Retrospectively, the last year delivered a decent 9.4% gain to the company's revenues. This was backed up an excellent period prior to see revenue up by 63% in total over the last three years. So we can start by confirming that the company has done a great job of growing revenues over that time.
Turning to the outlook, the next year should generate growth of 14% as estimated by the eight analysts watching the company. With the industry predicted to deliver 89% growth, the company is positioned for a weaker revenue result.
With this in mind, we find it intriguing that Bandwidth's P/S is closely matching its industry peers. Apparently many investors in the company are less bearish than analysts indicate and aren't willing to let go of their stock right now. Maintaining these prices will be difficult to achieve as this level of revenue growth is likely to weigh down the shares eventually.
The Final Word
Bandwidth's plummeting stock price has brought its P/S back to a similar region as the rest of the industry. 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.
When you consider that Bandwidth's revenue growth estimates are fairly muted compared to the broader industry, it's easy to see why we consider it unexpected to be trading at its current P/S ratio. At present, we aren't confident in the P/S as the predicted future revenues aren't likely to support a more positive sentiment for long. 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 Bandwidth that you need to be mindful of.
If these risks are making you reconsider your opinion on Bandwidth, explore our interactive list of high quality stocks to get an idea of what else is out there.
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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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Bandwidth Inc. (纳斯达克股票代码:BAND)的股价在经历了之前相对较好的时期后,本月下跌了26%,表现十分糟糕。回顾过去的十二个月,无论如何,该股表现良好,涨幅为25%。
尽管其价格已大幅下跌,但当美国电信行业的市盈率中位数约为1.2倍时,仍不会有多少人认为Bandwidth的0.7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。
纳斯达克GS: BAND 与行业的股价销售比率 2024 年 6 月 22 日
Bandwidth的市销率对股东意味着什么?
Bandwidth最近确实做得很好,因为其收入增长是正的,而大多数其他公司的收入却在倒退。也许市场预计其目前的强劲表现将像行业其他部门一样逐渐减弱,这使市销售率保持在控制范围内。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。
想全面了解分析师对公司的估计吗?然后,我们的免费带宽报告将帮助您发现即将发生的事情。
预计Bandwidth的收入会增长吗?
只有当公司的增长密切关注行业时,你才能放心地看到像Bandwidth这样的市销率。
回顾过去,去年的公司收入实现了9.4%的可观增长。在过去三年中,总收入增长了63%,此前这是一个很好的时期。因此,我们可以首先确认该公司在此期间在增加收入方面做得很好。
谈到前景,根据关注该公司的八位分析师的估计,明年将实现14%的增长。预计该行业将实现89%的增长,因此该公司的收入业绩将疲软。
考虑到这一点,我们发现带宽的市销率与业内同行非常接近,这很有趣。显然,该公司的许多投资者没有分析师所表示的那么看跌,并且不愿意立即放弃股票。维持这些价格将很难实现,因为这种收入增长水平最终可能会压低股价。
最后一句话
Bandwidth的股价暴跌使其市销率回到了与该行业其他公司相似的区域。尽管市销率不应该成为决定你是否买入股票的决定性因素,但它是衡量收入预期的有力晴雨表。
当你考虑到与整个行业相比,Bandwidth的收入增长预期相当低时,不难理解我们为何认为以目前的市销率进行交易是出乎意料的。目前,我们对市销率没有信心,因为预期的未来收入不太可能长期支撑更积极的情绪。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 3 个需要注意的带宽警告标志。
如果这些风险让你重新考虑你对带宽的看法,请浏览我们的高质量股票互动清单,了解还有什么。
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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