Twin Vee Powercats Co. (NASDAQ:VEEE) shareholders that were waiting for something to happen have been dealt a blow with a 33% share price drop in the last month. For any long-term shareholders, the last month ends a year to forget by locking in a 76% share price decline.
Following the heavy fall in price, when close to half the companies operating in the United States' Leisure industry have price-to-sales ratios (or "P/S") above 0.9x, you may consider Twin Vee Powercats as an enticing stock to check out with its 0.2x P/S ratio. However, the P/S might be low for a reason and it requires further investigation to determine if it's justified.
What Does Twin Vee Powercats' P/S Mean For Shareholders?
For example, consider that Twin Vee Powercats' financial performance has been poor lately as its revenue has been in decline. It might be that many expect the disappointing revenue performance to continue or accelerate, which has repressed the P/S. However, if this doesn't eventuate then existing shareholders may be feeling optimistic about the future direction of the share price.
Although there are no analyst estimates available for Twin Vee Powercats, take a look at this free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.
Do Revenue Forecasts Match The Low P/S Ratio?
In order to justify its P/S ratio, Twin Vee Powercats would need to produce sluggish growth that's trailing the industry.
Taking a look back first, the company's revenue growth last year wasn't something to get excited about as it posted a disappointing decline of 25%. Still, the latest three year period has seen an excellent 97% overall rise in revenue, in spite of its unsatisfying short-term performance. 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.
Weighing the recent medium-term upward revenue trajectory against the broader industry's one-year forecast for contraction of 1.8% shows it's a great look while it lasts.
In light of this, it's quite peculiar that Twin Vee Powercats' P/S sits below the majority of other companies. Apparently some shareholders believe the recent performance has exceeded its limits and have been accepting significantly lower selling prices.
What We Can Learn From Twin Vee Powercats' P/S?
Twin Vee Powercats' recently weak share price has pulled its P/S back below other Leisure companies. 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.
Our examination of Twin Vee Powercats revealed that despite growing revenue over the medium-term in a shrinking industry, the P/S doesn't reflect this as it's lower than the industry average. There could be some major unobserved threats to revenue preventing the P/S ratio from matching this positive performance. The most obvious risk is that its revenue trajectory may not keep outperforming under these tough industry conditions. It appears many are indeed anticipating revenue instability, because this relative performance should normally provide a boost to the share price.
It's always necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Twin Vee Powercats, and understanding these should be part of your investment process.
If you're unsure about the strength of Twin Vee Powercats' 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.
纳斯达克股票代码VEEE的Twin Vee Powercats Co.股东们一直在等待着一些事情的发生,最近一个月股价下跌了33%,给他们以沉重的打击。对于任何长期持有的股东来说,上个月标志着一个令人难忘的一年,股价下跌了76%。
在股价大幅下跌之后,接近一半在美国休闲行业运营的公司市销率(或“P/S”)高于0.9倍,你可能会认为Twin Vee Powercats是一支值得关注的股票,因为其市销率为0.2倍。但市销率可能之所以低是有原因的,需要进一步调查才能判断是否合理。
Twin Vee Powercats的市销率对股东意味着什么?
例如,考虑到Twin Vee Powercats的财务表现最近表现不佳,营业收入一直在下降。很可能是许多人预计令人失望的营业收入表现将继续或加剧,这就压制了市销率。但如果这种情况没有发生,那么现有股东可能对股价未来走势感到乐观。
虽然目前没有Twin Vee Powercats的分析师预估数据,但可以查看这个免费的数据丰富的可视化工具,以了解该公司在收入、营业收入和现金流方面的表现。
鉴于此,Twin Vee Powercats的市销率低于大多数其他公司,这相当奇怪。显然,一些股东认为公司近期的表现已经超出了它的极限,并且已经接受了明显较低的售价。
我们从Twin Vee Powercats的市销率可以学到什么?
Twin Vee Powercats最近疲软的股价已经将其市销率拉回到低于其他休闲公司的水平。仅仅使用市销率来判断是否卖出股票是不明智的,然而它可以成为公司未来前景的实用指南。
我们对Twin Vee Powercats的研究表明,尽管在一个萎缩的行业中,营业收入在中期内增长,但市销率未能反映这一点,因为它低于行业平均水平。可能存在一些重大的未被观察到的威胁导致营业收入无法匹配这种积极表现。最明显的风险是,其营业收入轨迹在艰难的行业条件下可能无法保持超越。看起来很多人的确预期营业收入将不稳定,因为这种相对表现通常会提振股价。
考虑到投资风险的存在,了解Twin Vee Powercats存在的3个预警信号,应该是您的投资流程的一部分。
如果您对Twin Vee Powercats的业务实力感到不确定,为什么不探索一下我们互动的股票列表,看看有哪些其他公司可能会被忽略,它们具有 solId business fundamentals。