Genscript Biotech Corporation (HKG:1548) shares have had a really impressive month, gaining 43% after a shaky period beforehand. Unfortunately, the gains of the last month did little to right the losses of the last year with the stock still down 42% over that time.
Following the firm bounce in price, given close to half the companies operating in Hong Kong's Life Sciences industry have price-to-sales ratios (or "P/S") below 2.4x, you may consider Genscript Biotech as a stock to potentially avoid with its 3.8x P/S ratio. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the elevated P/S.
SEHK:1548 Price to Sales Ratio vs Industry July 30th 2024
What Does Genscript Biotech's P/S Mean For Shareholders?
There hasn't been much to differentiate Genscript Biotech's and the industry's revenue growth lately. One possibility is that the P/S ratio is high because investors think this modest revenue performance will accelerate. If not, then existing shareholders may be a little nervous about the viability of the share price.
If you'd like to see what analysts are forecasting going forward, you should check out our free report on Genscript Biotech.
What Are Revenue Growth Metrics Telling Us About The High P/S?
The only time you'd be truly comfortable seeing a P/S as high as Genscript Biotech's is when the company's growth is on track to outshine the industry.
If we review the last year of revenue growth, the company posted a terrific increase of 34%. The latest three year period has also seen an excellent 115% overall rise in revenue, aided by its short-term performance. Therefore, it's fair to say the revenue growth recently has been superb for the company.
Shifting to the future, estimates from the eleven analysts covering the company suggest revenue should grow by 48% per annum over the next three years. Meanwhile, the rest of the industry is forecast to only expand by 17% each year, which is noticeably less attractive.
With this information, we can see why Genscript Biotech is trading at such a high P/S compared to the industry. Apparently shareholders aren't keen to offload something that is potentially eyeing a more prosperous future.
What Does Genscript Biotech's P/S Mean For Investors?
The large bounce in Genscript Biotech's shares has lifted the company's P/S handsomely. 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.
As we suspected, our examination of Genscript Biotech's analyst forecasts revealed that its superior revenue outlook is contributing to its high P/S. It appears that shareholders are confident in the company's future revenues, which is propping up the P/S. Unless these conditions change, they will continue to provide strong support to the share price.
Before you settle on your opinion, we've discovered 1 warning sign for Genscript Biotech that you should be aware of.
If strong companies turning a profit tickle your fancy, then you'll want to check out this free list of interesting companies that trade on a low P/E (but have proven they can grow earnings).
Genscript生物科技股份有限公司(HKG:1548)股價在動盪一段時間後,過去一個月表現卓越,上漲了43%。但遺憾的是,過去一年的損失仍使股票下跌了42%。
由於香港生命科學行業中近一半的公司的市銷率(或“P / S”)低於2.4倍,因此您可能認爲Genscript生物科技的市銷率爲3.8倍是要避免的股票。然而,我們需要深入挖掘,以確定這種高市銷率是否有合理基礎。
SEHK:1548與行業市銷率對比於2024年7月30日
Genscript生物科技的市銷率對股東意味着什麼?
近來,Genscript生物科技的營收增長與行業的有所差別。其中一個可能是P / S比率高,因爲投資者認爲這種適度的營收表現將加速增長。如果不是,那麼現有股東可能對股價的可持續性有些緊張。
如果您想查看分析師預測,您應該查看我們的Genscript Biotech免費報告。
營收增長指標告訴我們高市銷率意味着什麼?
只有當公司的增長步伐可以超過行業時,你才真正能看到像Genscript生物科技這樣的高市銷率。
如果我們查看過去一年的營收增長,公司的營收增長率驚人增長了34%。 過去三年的整體營收也看到了115%的出色增長,其短期表現有所助益。因此,可以說公司最近的營收增長表現非常出色。
轉向未來,覆蓋該公司的十一位分析師的估計顯示,未來三年公司的營收預計每年增長48%,而行業其餘部分預計每年僅增長17%,相對不太有吸引力。有了這些信息,我們就可以看出Genscript生物科技爲什麼與行業相比市銷率如此之高了。顯然,股東不願意卸貨,因爲這家公司可能會迎來更加繁榮的未來。
Genscript生物科技的股價大幅反彈,使公司的市銷率急劇上漲。雖然市銷率不應成爲您買賣股票的決定性因素,但它可以成爲市場預期的不錯基準。
Genscript Biotech的市銷率對於投資者意味着什麼?
正如我們所懷疑的那樣,我們對Genscript生物科技的分析師預測進行的檢查顯示,其卓越的營收前景正在推動其高市銷率。股東們似乎對公司未來的收入保持信心,這提高了市銷率。除非這些情況發生變化,否則它們將繼續對股價提供強有力的支持。
在您確定自己的意見之前,我們發現Genscript生物科技有1個警告信號需要您知道。
如果您喜歡盈利的強勁公司,那麼您將想要查看這個自由的有趣公司列表,這些公司的市銷率很低(但已經證明它們能夠增長收益)。