Despite an already strong run, Clover Health Investments, Corp. (NASDAQ:CLOV) shares have been powering on, with a gain of 29% in the last thirty days. The last 30 days bring the annual gain to a very sharp 49%.
Although its price has surged higher, given about half the companies operating in the United States' Healthcare industry have price-to-sales ratios (or "P/S") above 1.1x, you may still consider Clover Health Investments as an attractive investment with its 0.3x P/S ratio. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's limited.
NasdaqGS:CLOV Price to Sales Ratio vs Industry June 28th 2024
What Does Clover Health Investments' P/S Mean For Shareholders?
Clover Health Investments could be doing better as its revenue has been going backwards lately while most other companies have been seeing positive revenue growth. Perhaps the P/S remains low as investors think the prospects of strong revenue growth aren't on the horizon. So while you could say the stock is cheap, investors will be looking for improvement before they see it as good value.
Want the full picture on analyst estimates for the company? Then our free report on Clover Health Investments will help you uncover what's on the horizon.
Is There Any Revenue Growth Forecasted For Clover Health Investments?
In order to justify its P/S ratio, Clover Health Investments would need to produce sluggish growth that's trailing the industry.
In reviewing the last year of financials, we were disheartened to see the company's revenues fell to the tune of 31%. However, a few very strong years before that means that it was still able to grow revenue by an impressive 186% in total over the last three years. So we can start by confirming that the company has generally done a very good job of growing revenue over that time, even though it had some hiccups along the way.
Turning to the outlook, the next three years should bring diminished returns, with revenue decreasing 10.0% per annum as estimated by the three analysts watching the company. Meanwhile, the broader industry is forecast to expand by 7.1% per annum, which paints a poor picture.
With this information, we are not surprised that Clover Health Investments is trading at a P/S lower than the industry. However, shrinking revenues are unlikely to lead to a stable P/S over the longer term. There's potential for the P/S to fall to even lower levels if the company doesn't improve its top-line growth.
The Bottom Line On Clover Health Investments' P/S
Clover Health Investments' stock price has surged recently, but its but its P/S still remains modest. Using the price-to-sales ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects.
As we suspected, our examination of Clover Health Investments' analyst forecasts revealed that its outlook for shrinking revenue is contributing to its low P/S. As other companies in the industry are forecasting revenue growth, Clover Health Investments' poor outlook justifies its low P/S ratio. Unless there's material change, it's hard to envision a situation where the stock price will rise drastically.
Having said that, be aware Clover Health Investments is showing 3 warning signs in our investment analysis, you should know about.
If these risks are making you reconsider your opinion on Clover Health Investments, explore our interactive list of high quality stocks to get an idea of what else is out there.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
尽管Clover Health Investments,Corp.(纳斯达克:CLOV)的股票已经有了非常强劲的上涨,但在过去30天中,股票涨幅达到了29%。 这最后30天,年度涨幅高达49%。
尽管价格已经飙升,但考虑到美国医疗保健行业约一半的公司的市销率(或“P / S”)超过1.1x,您仍可以将Clover Health Investments作为具有0.3x市销率的有吸引力的投资考虑。但是,您不能仅仅看P / S值,因为它的限制可能有合理的解释。
NasdaqGS:CLOV市销率与行业板块相比于2024年6月28日
Clover Health Investments的市销率对股东意味着什么?
尽管大多数其他公司都在实现正收入增长,Clover Health Investments近期的营业收入一直在下滑,表现不佳。也许市销率保持低位是因为投资者认为强劲的收入增长前景不乐观。因此,即使您可能认为该股票价格便宜,投资者仍将寻求在看到改善之前将其视为有价值。
想要了解公司的分析师预测的全部情况吗?然后我们的免费报告:Clover Health Investments将帮助您发现未来几年的情况。
Clover Health Investments是否有营收增长预测?
为了证明其市销率是有道理的,Clover Health Investments需要提供落后于行业的缓慢增长。
有了这些信息,我们不惊讶于Clover Health Investments的市销率低于行业水平。 然而,收入萎缩不太可能导致长期保持稳定的市销率。 如果公司不改善销售额增长,市销率可能会降至更低的水平。
Clover Health Investments的市销率结论
尽管Clover Health Investments的股票价格最近上涨,但其市销率仍然保持适度。仅仅使用价格-销售比来确定是否卖出股票并不明智,但它可以成为公司未来前景的实用指南。
正如我们预料的那样,我们对Clover Health Investments的分析师预测的研究表明,其预期营收萎缩的前景正在导致其市销率降低。由于其他行业公司预计营收增长,Clover Health Investments的前景不佳证明了其较低的市销率。除非有实质性的变化,否则很难想象股票价格会大幅上升。
话虽如此,请注意,我们的投资分析显示,Clover Health Investments的3个警告符号。
如果这些风险正在使您重新考虑Clover Health Investments的看法,那么请浏览我们的互动高品质股票列表,以了解其他更好的股票投资选择。