Stronghold Digital Mining, Inc. (NASDAQ:SDIG) shareholders would be excited to see that the share price has had a great month, posting a 25% gain and recovering from prior weakness. Unfortunately, despite the strong performance over the last month, the full year gain of 2.2% isn't as attractive.
In spite of the firm bounce in price, Stronghold Digital Mining may still be sending very bullish signals at the moment with its price-to-sales (or "P/S") ratio of 0.6x, since almost half of all companies in the Software industry in the United States have P/S ratios greater than 4.2x and even P/S higher than 11x are not unusual. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's so limited.
Check out our latest analysis for Stronghold Digital Mining
NasdaqGM:SDIG Price to Sales Ratio vs Industry December 7th 2023
What Does Stronghold Digital Mining's P/S Mean For Shareholders?
Stronghold Digital Mining could be doing better as its revenue has been going backwards lately while most other companies have been seeing positive revenue growth. The P/S ratio is probably low because investors think this poor revenue performance isn't going to get any better. If this is the case, then existing shareholders will probably struggle to get excited about the future direction of the share price.
Want the full picture on analyst estimates for the company? Then our free report on Stronghold Digital Mining will help you uncover what's on the horizon.
Is There Any Revenue Growth Forecasted For Stronghold Digital Mining?
There's an inherent assumption that a company should far underperform the industry for P/S ratios like Stronghold Digital Mining's to be considered reasonable.
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 28%. Spectacularly, three year revenue growth has ballooned by several orders of magnitude, despite the drawbacks experienced in the last 12 months. So while the company has done a great job in the past, it's somewhat concerning to see revenue growth decline so harshly.
Turning to the outlook, the next year should generate growth of 39% as estimated by the two analysts watching the company. With the industry only predicted to deliver 15%, the company is positioned for a stronger revenue result.
With this in consideration, we find it intriguing that Stronghold Digital Mining's P/S sits behind most of its industry peers. Apparently some shareholders are doubtful of the forecasts and have been accepting significantly lower selling prices.
The Bottom Line On Stronghold Digital Mining's P/S
Shares in Stronghold Digital Mining have risen appreciably however, its P/S is still subdued. 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.
A look at Stronghold Digital Mining's revenues reveals that, despite glowing future growth forecasts, its P/S is much lower than we'd expect. When we see strong growth forecasts like this, we can only assume potential risks are what might be placing significant pressure on the P/S ratio. While the possibility of the share price plunging seems unlikely due to the high growth forecasted for the company, the market does appear to have some hesitation.
There are also other vital risk factors to consider and we've discovered 5 warning signs for Stronghold Digital Mining (2 make us uncomfortable!) that you should be aware of before investing here.
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.
Stronghold Digital Mining, Inc.(NASDAQ:SDIG)の株価が素晴らしい1か月を過ごし、25%の上昇と以前の弱さから回復したことにより、株主は興奮するだろう。 ただし、この1か月の強力なパフォーマンスにもかかわらず、1年間の利益率は2.2%と魅力的ではありません。
価格回復にもかかわらず、Stronghold Digital Miningは、アメリカのソフトウェア業界のほとんどの企業がP/S比率が4.2倍以上であり、P/S比率が11倍以上であることも珍しくないことから、現在非常に強気なシグナルを示している可能性があります。ただし、P/Sを単純に顔に取ることは賢明ではなく、それが非常に制限されている理由があるかもしれないためです。
Stronghold Digital Miningの最新分析をチェックしてください。
NasdaqGM:SDIGの価格対売上高比率対業界2023年12月7日
株主にとってStronghold Digital MiningのP/Sは何を意味するのでしょうか?
他のほとんどの企業が売上高の増加を示している中、Stronghold Digital Miningは収益が減少しており、より良いパフォーマンスを発揮できる可能性がある。 P/S比率が低いのは、投資家がこの貧弱な収益パフォーマンスが改善しないと考えているためです。 この場合、既存株主は株価の将来的な方向に興味を持つのは難しいでしょう。
会社のアナリストの見積もりの全体像が欲しいですか?弊社の無料レポートでStronghold Digital Miningについて見つけることができます。
Stronghold Digital Miningに予測される売上高の成長はありますか?
Stronghold Digital MiningのP/S比率のようなものが合理的と思われるには、必ずしも業界を遥かに下回る必要があるという前提があります。
これを考慮すると、Stronghold Digital MiningのP/Sが業界の多くの競合他社よりも低いことは興味深いと思います。 明らかに、一部の株主は予測に疑念を抱いており、非常に低い販売価格を受け入れています。
Stronghold Digital MiningのP/Sの最終結果はこうなります。
Stronghold Digital Miningの株はかなり上昇しましたが、そのP/Sはまだ抑制されています。通常、P / S比率の使用を制限することが望ましい理由は、市場が企業の全体的な健康状態について何を考えているかを確立するためです。
Stronghold Digital Miningの収益を見ると、将来の成長予測が輝かしいにもかかわらず、P/S比率が予想よりも低いことが分かります。 成長予測が強力である場合、潜在的なリスクがP/S比率に大きなプレッシャーをかけている可能性があるためです。 会社の高い成長予想のため、株価が急落する可能性は低いと思われますが、市場には躊躇があるようです。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。
オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会(ASIC)の管理を受けております(AFSL No. 224663)。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。