The Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) share price has softened a substantial 25% over the previous 30 days, handing back much of the gains the stock has made lately. For any long-term shareholders, the last month ends a year to forget by locking in a 64% share price decline.
Although its price has dipped substantially, there still wouldn't be many who think Petco Health and Wellness Company's price-to-sales (or "P/S") ratio of 0.1x is worth a mention when the median P/S in the United States' Specialty Retail industry is similar at about 0.3x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.
NasdaqGS:WOOF Price to Sales Ratio vs Industry August 7th 2024
What Does Petco Health and Wellness Company's Recent Performance Look Like?
Recent times haven't been great for Petco Health and Wellness Company as its revenue has been rising slower than most other companies. Perhaps the market is expecting future revenue performance to lift, which has kept the P/S from declining. You'd really hope so, otherwise you're paying a relatively elevated price for a company with this sort of growth profile.
Want the full picture on analyst estimates for the company? Then our free report on Petco Health and Wellness Company will help you uncover what's on the horizon.
Is There Some Revenue Growth Forecasted For Petco Health and Wellness Company?
In order to justify its P/S ratio, Petco Health and Wellness Company would need to produce growth that's similar to the industry.
Taking a look back first, we see that there was hardly any revenue growth to speak of for the company over the past year. Regardless, revenue has managed to lift by a handy 19% in aggregate from three years ago, thanks to the earlier period of growth. Therefore, it's fair to say that revenue growth has been inconsistent recently for the company.
Shifting to the future, estimates from the analysts covering the company suggest revenue should grow by 1.2% per year over the next three years. With the industry predicted to deliver 5.6% growth per annum, the company is positioned for a weaker revenue result.
In light of this, it's curious that Petco Health and Wellness Company's 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. These shareholders may be setting themselves up for future disappointment if the P/S falls to levels more in line with the growth outlook.
What Does Petco Health and Wellness Company's P/S Mean For Investors?
With its share price dropping off a cliff, the P/S for Petco Health and Wellness Company looks to be in line with the rest of the Specialty Retail industry. Typically, we'd caution against reading too much into price-to-sales ratios when settling on investment decisions, though it can reveal plenty about what other market participants think about the company.
When you consider that Petco Health and Wellness Company's 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. When we see companies with a relatively weaker revenue outlook compared to the industry, we suspect the share price is at risk of declining, sending the moderate P/S lower. 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.
Before you settle on your opinion, we've discovered 2 warning signs for Petco Health and Wellness Company (1 makes us a bit uncomfortable!) 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).
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
Petco Health and Wellness公司股價在過去30天急劇下降了25%,退還了股票最近所取得的大部分收益。 對於任何長期股東來說,最近一個月結束了一個值得遺忘的年份,因爲股票價格下跌了64%。
儘管其價格已大幅下跌,但在美國專業零售行業中,Petco Health and Wellness公司的市銷率(或「 P / S」)爲0.1x,不值得一提,因爲中位數爲0.3x。 然而,如果沒有市盈率的合理基礎,投資者可能會忽略明顯的機會或潛在的挫折。
納斯達克GS:WOOF市銷率與行業板塊2024年8月7日比較
Petco Health and Wellness公司最近的業績如何?
Petco Health and Wellness公司的營業收入增長速度比大多數其他公司要慢,最近的時期也未有所改觀。 或許市場期待未來的營收表現會有所提升,這也使得市銷率沒有下降。否則,爲這樣一家增長分析看似平庸的公司支付相對較高的價格是不划算的。
您是否想了解該公司的分析師預測? 那麼我們免費的Petco Health and Wellness公司報告將幫助您了解未來的趨勢。
Petco Health and Wellness公司的營收增長是否會有所預測?
爲了證明其市銷率的合理性,Petco Health and Wellness公司需要達到與該行業相似的增長速度。
鑑於此,令人好奇的是Petco Health and Wellness公司的市銷率與其他大多數公司相符。 顯然,該公司的許多投資者不像分析師所表示的那樣看市場。 如果市銷率跌至與增長前景更加一致的水平,這些股東可能會爲未來的失望埋下伏筆。
Petco Health and Wellness公司的市銷率對投資者意味着什麼?
隨着其股價暴跌,Petco Health and Wellness公司的市銷率似乎與專業零售行業的其他公司相符。通常情況下,當我們決定投資時,我們會謹慎考慮市銷率,儘管它可以充分揭示其他市場參與者對該公司的看法。
如果考慮到Petco Health and Wellness公司的營收增長預測相對於整個行業而言非常微弱,那麼我們就很容易看出爲什麼它會出乎意料地交易在當前的市銷率水平。 當我們看到相對於行業而言營收前景相對較弱的公司時,我們懷疑該公司的股價會有下降的風險,進而推低其市銷率。 這種情況對目前和未來的投資者都構成風險,如果低營收增長對情緒產生影響,股價很可能會下降。
在您下定論之前,我們已經發現Petco Health and Wellness公司的2個警告信號(其中1個讓我們有些不安!),您應該知道。