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.
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
儘管Clover Health Investments,Corp.(納斯達克:CLOV)的股票已經有了非常強勁的上漲,但在過去30天中,股票漲幅達到了29%。 這最後30天,年度漲幅高達49%。
儘管價格已經飆升,但考慮到美國醫療保健行業約一半的公司的市銷率(或“P / S”)超過1.1x,您仍可以將Clover Health Investments作爲具有0.3x市銷率的有吸引力的投資考慮。但是,您不能僅僅看P / S值,因爲它的限制可能有合理的解釋。
Clover Health Investments的市銷率對股東意味着什麼?
儘管大多數其他公司都在實現正收入增長,Clover Health Investments近期的營業收入一直在下滑,表現不佳。也許市銷率保持低位是因爲投資者認爲強勁的收入增長前景不樂觀。因此,即使您可能認爲該股票價格便宜,投資者仍將尋求在看到改善之前將其視爲有價值。
想要了解公司的分析師預測的全部情況嗎?然後我們的免費報告:Clover Health Investments將幫助您發現未來幾年的情況。
Clover Health Investments是否有營收增長預測?
爲了證明其市銷率是有道理的,Clover Health Investments需要提供落後於行業的緩慢增長。
有了這些信息,我們不驚訝於Clover Health Investments的市銷率低於行業水平。 然而,收入萎縮不太可能導致長期保持穩定的市銷率。 如果公司不改善銷售額增長,市銷率可能會降至更低的水平。
Clover Health Investments的市銷率結論
儘管Clover Health Investments的股票價格最近上漲,但其市銷率仍然保持適度。僅僅使用價格-銷售比來確定是否賣出股票並不明智,但它可以成爲公司未來前景的實用指南。
正如我們預料的那樣,我們對Clover Health Investments的分析師預測的研究表明,其預期營收萎縮的前景正在導致其市銷率降低。由於其他行業公司預計營收增長,Clover Health Investments的前景不佳證明了其較低的市銷率。除非有實質性的變化,否則很難想象股票價格會大幅上升。
話雖如此,請注意,我們的投資分析顯示,Clover Health Investments的3個警告符號。
如果這些風險正在使您重新考慮Clover Health Investments的看法,那麼請瀏覽我們的互動高品質股票列表,以了解其他更好的股票投資選擇。