Maxeon Solar Technologies, Ltd. (NASDAQ:MAXN) shares have had a horrible month, losing 31% after a relatively good period beforehand. For any long-term shareholders, the last month ends a year to forget by locking in a 87% share price decline.
Since its price has dipped substantially, Maxeon Solar Technologies may look like a strong buying opportunity at present with its price-to-sales (or "P/S") ratio of 0.2x, considering almost half of all companies in the Semiconductor industry in the United States have P/S ratios greater than 4.5x and even P/S higher than 11x aren't out of the ordinary. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the highly reduced P/S.
NasdaqGS:MAXN Price to Sales Ratio vs Industry March 10th 2024
How Maxeon Solar Technologies Has Been Performing
With revenue growth that's inferior to most other companies of late, Maxeon Solar Technologies has been relatively sluggish. The P/S ratio is probably low because investors think this lacklustre 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.
Keen to find out how analysts think Maxeon Solar Technologies' future stacks up against the industry? In that case, our free report is a great place to start.
What Are Revenue Growth Metrics Telling Us About The Low P/S?
Maxeon Solar Technologies' P/S ratio would be typical for a company that's expected to deliver very poor growth or even falling revenue, and importantly, perform much worse than the industry.
Retrospectively, the last year delivered an exceptional 27% gain to the company's top line. Revenue has also lifted 26% in aggregate from three years ago, mostly thanks to the last 12 months of growth. Accordingly, shareholders would have probably been satisfied with the medium-term rates of revenue growth.
Looking ahead now, revenue is anticipated to climb by 3.8% per year during the coming three years according to the nine analysts following the company. That's shaping up to be materially lower than the 25% per annum growth forecast for the broader industry.
In light of this, it's understandable that Maxeon Solar Technologies' P/S sits below the majority of other companies. It seems most investors are expecting to see limited future growth and are only willing to pay a reduced amount for the stock.
The Bottom Line On Maxeon Solar Technologies' P/S
Having almost fallen off a cliff, Maxeon Solar Technologies' share price has pulled its P/S way down as well. We'd say the price-to-sales ratio's power isn't primarily as a valuation instrument but rather to gauge current investor sentiment and future expectations.
We've established that Maxeon Solar Technologies maintains its low P/S on the weakness of its forecast growth being lower than the wider industry, as expected. At this stage investors feel the potential for an improvement in revenue isn't great enough to justify a higher P/S ratio. The company will need a change of fortune to justify the P/S rising higher in the future.
Having said that, be aware Maxeon Solar Technologies is showing 2 warning signs in our investment analysis, and 1 of those doesn't sit too well with us.
If these risks are making you reconsider your opinion on Maxeon Solar Technologies, explore our interactive list of high quality stocks to get an idea of what else is out there.
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Maxeon Solar Technologies, Ltd.(NASDAQ:MAXN)株は、それ以前に比べて比較的良好な期間がありながら、悪い月を過ごし、31%の下落となりました。これにより、長期的な株主にとって、去年を忘れる一年が終わり、株価は87%下落しました。
価格が大幅に下がったため、Maxeon Solar Technologiesは現在、価格/売上高比(または「P/S」比率)が0.2倍であり、米国の半導体業界の半数近くがP/S比率が4.5倍以上で、さらにP/S比率が11倍以上でも珍しくありません。それでも、P/Sの大幅な低下に合理的な根拠があるかどうかを調査する必要があるでしょう。
NasdaqGS:MAXNの価格/売上高比率vs業種2024年3月10日
Maxeon Solar Technologiesの活躍
Maxeon Solar Technologiesは、売上高の伸びが最近のほとんどの企業に比べて劣っており、比較的不振であった。P/S比率が低い理由は、投資家がこの不振な売上高パフォーマンスが改善しないと考えているためでしょう。この場合、株主は株価の将来的な方向に興奮することはできないでしょう。
アナリストは、Maxeon Solar Technologiesの将来に関してどのように考えているのか知りたいと思っていますか?その場合は、当社の無料レポートがおすすめです。
低いP/Sについての売上高成長の指標は何を示しているのでしょうか?
Maxeon Solar TechnologiesのP/S比率は、非常に低い成長または減少する売り上げを納めると予想される企業には典型的だと言えます。さらに、業界よりもパフォーマンスが遥かに悪いでしょう。
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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。