Despite an already strong run, iClick Interactive Asia Group Limited (NASDAQ:ICLK) shares have been powering on, with a gain of 50% in the last thirty days. Not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 30% in the last twelve months.
Even after such a large jump in price, when close to half the companies operating in the United States' Media industry have price-to-sales ratios (or "P/S") above 0.9x, you may still consider iClick Interactive Asia Group as an enticing stock to check out with its 0.2x P/S ratio. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's limited.
Check out our latest analysis for iClick Interactive Asia Group
NasdaqGM:ICLK Price to Sales Ratio vs Industry December 14th 2023
What Does iClick Interactive Asia Group's P/S Mean For Shareholders?
For example, consider that iClick Interactive Asia Group's financial performance has been poor lately as its revenue has been in decline. Perhaps the market believes the recent revenue performance isn't good enough to keep up the industry, causing the P/S ratio to suffer. If you like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's out of favour.
We don't have analyst forecasts, but you can see how recent trends are setting up the company for the future by checking out our free report on iClick Interactive Asia Group's earnings, revenue and cash flow.
How Is iClick Interactive Asia Group's Revenue Growth Trending?
In order to justify its P/S ratio, iClick Interactive Asia Group would need to produce sluggish growth that's trailing the industry.
In reviewing the last year of financials, we were disheartened to see the company's revenues fell to the tune of 45%. This means it has also seen a slide in revenue over the longer-term as revenue is down 22% in total over the last three years. So unfortunately, we have to acknowledge that the company has not done a great job of growing revenue over that time.
Comparing that to the industry, which is predicted to deliver 32% growth in the next 12 months, the company's downward momentum based on recent medium-term revenue results is a sobering picture.
In light of this, it's understandable that iClick Interactive Asia Group's P/S would sit below the majority of other companies. Nonetheless, there's no guarantee the P/S has reached a floor yet with revenue going in reverse. Even just maintaining these prices could be difficult to achieve as recent revenue trends are already weighing down the shares.
The Final Word
Despite iClick Interactive Asia Group's share price climbing recently, its P/S still lags most other companies. 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.
It's no surprise that iClick Interactive Asia Group maintains its low P/S off the back of its sliding revenue over the medium-term. At this stage investors feel the potential for an improvement in revenue isn't great enough to justify a higher P/S ratio. Unless the recent medium-term conditions improve, they will continue to form a barrier for the share price around these levels.
There are also other vital risk factors to consider and we've discovered 3 warning signs for iClick Interactive Asia Group (2 are significant!) that you should be aware of before investing here.
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.
尽管已经表现强劲,但iClick Interactive Asia Group Limited(纳斯达克股票代码:ICLK)的股价一直在上涨,在过去三十天中上涨了50%。并非所有股东都会感到欢欣鼓舞,因为在过去十二个月中,股价仍下跌了非常令人失望的30%。
即使价格大幅上涨,在美国媒体行业运营的公司中,有近一半的市售率(或 “市盈率”)高于0.9倍,您仍然可以将iClick Interactive Asia Group视为一只诱人的股票,其市盈率为0.2倍。但是,仅按面值计算市盈率是不明智的,因为可能有其局限性的解释。
查看我们对iClick Interactive Asia Group的最新分析
纳斯达克GMM:ICLK 市销比率与行业对比 2023 年 12 月 14 日
iClick 互动亚洲集团的市盈率对股东意味着什么?
例如,考虑一下,由于收入下降,iClick Interactive Asia Group最近的财务表现不佳。也许市场认为最近的收入表现不足以维持该行业的发展,从而导致市盈率受到影响。如果你喜欢这家公司,你会希望情况并非如此,这样你就有可能在失宠的时候买入一些股票。
我们没有分析师的预测,但您可以查看我们关于iClick Interactive Asia Group的收益、收入和现金流的免费报告,了解最近的趋势如何为公司未来做好准备。
iClick 互动亚洲集团的收入增长趋势如何?
为了证明其市盈率是合理的,iClick Interactive Asia Group需要实现落后于该行业的缓慢增长。