Camping World Holdings, Inc. (NYSE:CWH) shares have continued their recent momentum with a 25% gain in the last month alone. Looking further back, the 23% rise over the last twelve months isn't too bad notwithstanding the strength over the last 30 days.
Even after such a large jump in price, it's still not a stretch to say that Camping World Holdings' price-to-sales (or "P/S") ratio of 0.2x right now seems quite "middle-of-the-road" compared to the Specialty Retail industry in the United States, where the median P/S ratio is around 0.4x. 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.
Check out our latest analysis for Camping World Holdings
NYSE:CWH Price to Sales Ratio vs Industry December 20th 2023
What Does Camping World Holdings' Recent Performance Look Like?
Camping World Holdings hasn't been tracking well recently as its declining revenue compares poorly to other companies, which have seen some growth in their revenues on average. Perhaps the market is expecting its poor revenue performance to improve, keeping the P/S from dropping. If not, then existing shareholders may be a little nervous about the viability of the share price.
Want the full picture on analyst estimates for the company? Then our free report on Camping World Holdings will help you uncover what's on the horizon.
Do Revenue Forecasts Match The P/S Ratio?
The only time you'd be comfortable seeing a P/S like Camping World Holdings' is when the company's growth is tracking the industry closely.
In reviewing the last year of financials, we were disheartened to see the company's revenues fell to the tune of 9.4%. Regardless, revenue has managed to lift by a handy 21% in aggregate from three years ago, thanks to the earlier period of growth. Accordingly, while they would have preferred to keep the run going, shareholders would be roughly satisfied with the medium-term rates of revenue growth.
Turning to the outlook, the next year should generate growth of 1.6% as estimated by the twelve analysts watching the company. That's shaping up to be materially lower than the 5.5% growth forecast for the broader industry.
In light of this, it's curious that Camping World Holdings' P/S sits in line with the majority of other companies. 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 Bottom Line On Camping World Holdings' P/S
Camping World Holdings' stock has a lot of momentum behind it lately, which has brought its P/S level with the rest of the industry. 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.
When you consider that Camping World Holdings' 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. Circumstances like this present a risk to current and prospective investors who may see share prices fall if the low revenue growth impacts the sentiment.
It is also worth noting that we have found 4 warning signs for Camping World Holdings (1 is a bit concerning!) that you need to take into consideration.
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.
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.
即使在價格大幅上漲之後,可以毫不誇張地說,與美國專業零售行業相比,Camping World Holdings目前0.2倍的市售率(或 “市盈率”)似乎相當 “處於中間位置”,後者的市盈率中位數約爲0.4倍。但是,在沒有解釋的情況下乾脆忽略市盈率是不明智的,因爲投資者可能忽視了獨特的機會或代價高昂的錯誤。
查看我們對露營世界控股公司的最新分析
紐約證券交易所:CWH 市銷比與行業的對比 2023 年 12 月 20 日
露營世界控股公司最近的表現如何?
Camping World Holdings最近表現不佳,因爲與其他公司的收入相比,其收入下降的情況不佳,後者的平均收入有所增長。也許市場預計其糟糕的收入表現會有所改善,從而防止市盈率下降。如果不是,那麼現有股東可能會對股價的可行性感到有些緊張。
想全面了解分析師對公司的估計?然後,我們關於 Camping World Holdings 的免費報告將幫助您發現即將發生的事情。
收入預測是否與市盈率相匹配?
看到像Camping World Holdings這樣的市盈率只有當公司的增長密切關注該行業時,你才會感到舒服。
有鑑於此,奇怪的是,Camping World Holdings的市盈率與大多數其他公司的市盈率持平。顯然,該公司的許多投資者沒有分析師所表示的那麼看跌,他們現在不願意放開股票。維持這些價格將很難實現,因爲這種收入增長水平最終可能會壓低股價。
露營世界控股公司P/S的底線
Camping World Holdings的股票最近勢頭強勁,這使其市盈率與業內其他公司持平。通常,我們傾向於將價格與銷售比率的使用限制在確定市場對公司整體健康狀況的看法上。
當你考慮到Camping World Holdings的收入增長預期與整個行業相比相當低時,不難理解爲什麼我們認爲以目前的市盈率進行交易是出乎意料的。目前,我們對市盈率沒有信心,因爲預測的未來收入不太可能長期支撐更樂觀的情緒。這樣的情況會給當前和潛在的投資者帶來風險,如果低收入增長影響市場情緒,他們可能會看到股價下跌。