Despite an already strong run, Clover Health Investments, Corp. (NASDAQ:CLOV) shares have been powering on, with a gain of 108% in the last thirty days. The annual gain comes to 169% following the latest surge, making investors sit up and take notice.
In spite of the firm bounce in price, it's still not a stretch to say that Clover Health Investments' price-to-sales (or "P/S") ratio of 0.8x right now seems quite "middle-of-the-road" compared to the Healthcare industry in the United States, where the median P/S ratio is around 1.2x. Although, it's not wise to simply ignore the P/S without explanation as investors may be disregarding a distinct opportunity or a costly mistake.
What Does Clover Health Investments' P/S Mean For Shareholders?
Clover Health Investments hasn't been tracking well recently as its declining revenue compares poorly to other companies, which have seen some growth in their revenues on average. One possibility is that the P/S ratio is moderate because investors think this poor revenue performance will turn around. However, if this isn't the case, investors might get caught out paying too much for the stock.
If you'd like to see what analysts are forecasting going forward, you should check out our free report on Clover Health Investments.
How Is Clover Health Investments' Revenue Growth Trending?
There's an inherent assumption that a company should be matching the industry for P/S ratios like Clover Health Investments' to be considered reasonable.
In reviewing the last year of financials, we were disheartened to see the company's revenues fell to the tune of 14%. Even so, admirably revenue has lifted 127% in aggregate from three years ago, notwithstanding the last 12 months. Although it's been a bumpy ride, it's still fair to say the revenue growth recently has been more than adequate for the company.
Shifting to the future, estimates from the three analysts covering the company suggest revenue growth is heading into negative territory, declining 8.3% per year over the next three years. With the industry predicted to deliver 7.5% growth per annum, that's a disappointing outcome.
With this in consideration, we think it doesn't make sense that Clover Health Investments' P/S is closely matching its industry peers. It seems most investors are hoping for a turnaround in the company's business prospects, but the analyst cohort is not so confident this will happen. There's a good chance these shareholders are setting themselves up for future disappointment if the P/S falls to levels more in line with the negative growth outlook.
What Does Clover Health Investments' P/S Mean For Investors?
Clover Health Investments' stock has a lot of momentum behind it lately, which has brought its P/S level with the rest of the 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.
Our check of Clover Health Investments' analyst forecasts revealed that its outlook for shrinking revenue isn't bringing down its P/S as much as we would have predicted. When we see a gloomy outlook like this, our immediate thoughts are that the share price is at risk of declining, negatively impacting P/S. If the declining revenues were to materialize in the form of a declining share price, shareholders will be feeling the pinch.
You should always think about risks. Case in point, we've spotted 3 warning signs for Clover Health Investments you should be aware of.
If companies with solid past earnings growth is up your alley, you may wish to see this free collection of other companies with strong earnings growth and low P/E ratios.
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.
すでに強力なランが続いているにもかかわらず、Clover Health Investments, corp (NASDAQ:CLOV) の株価は108%上昇し、ここ30日間ですでに169%の年間収益を記録しました。最新の急上昇により、投資家たちは注目しました。
株価の跳ね返りにもかかわらず、現時点でのClover Health Investmentsの売上高(P/S)比率は0.8倍で、米国のヘルスケア業界の中央値が約1.2倍に比べてかなり「中道」のように思えます。ただし、P/Sを説明なしで無視することは賢明とは言えません。投資家は独自の機会または高価な間違いを無視する可能性があります。
Clover Health InvestmentsのP/S比率は、株主にとって何を意味するのでしょうか?
最近の収益の減少によりClover Health Investmentsはうまく追いついていません。他社は収益成長を見ているのに対して、同社の売上高が悪いと比較しています。このP/S比率が中程度である可能性の1つは、投資家がこの悪い収益パフォーマンスが好転すると考えているためです。ただし、そうでない場合、投資家は株式を高く買い過ぎる可能性があります。
将来のアナリスト予測を知りたい場合は、Clover Health Investmentsに関する無料レポートをチェックしてください。
Clover Health Investmentsの売上高の成長はどうなっていますか?
Clover Health InvestmentsのP/S比率が業種にマッチする必要があるという仮定があります。
これを考慮すると、Clover Health InvestmentsのP/S比率が業種の同業他社に密接にマッチしていることは理にかなっていません。多くの投資家は企業のビジネス展望が好転することを期待していますが、アナリストの集団はそれほど自信を持っているわけではありません。負の成長見通しに合致するレベルまでP/S比率が低下した場合、これらの株主は将来的な失望感を抱く可能性が高いです。
Clover Health InvestmentsのP/S比率は投資家にとって何を意味するのでしょうか?
最近、Clover Health Investmentsの株式は非常に勢いがあり、業種全体のP/Sレベルに追いつきました。投資の決定をする際には、売上高に対する価格収益率に過度に意味づけることには注意が必要ですが、他の市場参加者がこの会社についてどう考えているかを多く示すことができます。
Clover Health Investmentsのアナリスト予測の確認結果から、売上高が縮小する見込みでも、P/Sは私たちが予測したほど下がっていません。このような暗い見通しを見ると、株価が下落リスクに晒され、それがP/Sに悪影響を与える可能性があるとすぐに考えます。売上高の減少が株価の下落という形で具体化した場合、株主はピンチを感じることになります。
常にリスクについて考えるべきです。具体例として、Clover Health Investmentsには注意すべき3つの警告サインがあることを確認しました。
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。