The LifeStance Health Group, Inc. (NASDAQ:LFST) share price has done very well over the last month, posting an excellent gain of 32%. The last 30 days bring the annual gain to a very sharp 82%.
Following the firm bounce in price, given around half the companies in the United States' Healthcare industry have price-to-sales ratios (or "P/S") below 0.9x, you may consider LifeStance Health Group as a stock to avoid entirely with its 3.3x P/S ratio. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the highly elevated P/S.
NasdaqGS:LFST Price to Sales Ratio vs Industry February 29th 2024
How LifeStance Health Group Has Been Performing
LifeStance Health Group certainly has been doing a good job lately as it's been growing revenue more than most other companies. It seems the market expects this form will continue into the future, hence the elevated P/S ratio. 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 LifeStance Health Group.
Do Revenue Forecasts Match The High P/S Ratio?
There's an inherent assumption that a company should far outperform the industry for P/S ratios like LifeStance Health Group's to be considered reasonable.
If we review the last year of revenue growth, the company posted a terrific increase of 22%. The strong recent performance means it was also able to grow revenue by 166% in total over the last three years. Accordingly, shareholders would have definitely welcomed those medium-term rates of revenue growth.
Looking ahead now, revenue is anticipated to climb by 16% during the coming year according to the eight analysts following the company. With the industry only predicted to deliver 8.0%, the company is positioned for a stronger revenue result.
With this information, we can see why LifeStance Health Group is trading at such a high P/S compared to the industry. Apparently shareholders aren't keen to offload something that is potentially eyeing a more prosperous future.
What We Can Learn From LifeStance Health Group's P/S?
Shares in LifeStance Health Group have seen a strong upwards swing lately, which has really helped boost its P/S figure. Using the price-to-sales ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects.
Our look into LifeStance Health Group shows that its P/S ratio remains high on the merit of its strong future revenues. At this stage investors feel the potential for a deterioration in revenues is quite remote, justifying the elevated P/S ratio. Unless the analysts have really missed the mark, these strong revenue forecasts should keep the share price buoyant.
There are also other vital risk factors to consider before investing and we've discovered 2 warning signs for LifeStance Health Group that you should be aware of.
If these risks are making you reconsider your opinion on LifeStance Health Group, explore our interactive list of high quality stocks to get an idea of what else is out there.
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.
LifeStance Health Group, Inc.(纳斯达克股票代码:LFST)的股价在上个月表现良好,涨幅为32%。在过去的30天里,年增长率达到非常大幅的82%。
在公司股价反弹之后,鉴于美国医疗保健行业约有一半的公司的市销率(或 “市销率”)低于0.9倍,您可以将LifeStance Health Group视为完全避开的股票,其市销率为3.3倍。但是,我们需要更深入地挖掘,以确定市销售率大幅上升是否有合理的依据。
纳斯达克GS:LFST 与行业的股价销售比率 2024 年 2 月 29 日
LifeStance 健康小组的表现如何
LifeStance Health Group最近无疑表现不错,因为其收入的增长幅度超过了大多数其他公司。市场似乎预计这种形式将持续到未来,因此市销售率将上升。但是,如果不是这样,投资者可能会陷入为股票支付过多费用的困境。
如果你想了解分析师对未来的预测,你应该查看我们关于LifeStance Health Group的免费报告。
收入预测与高市销率相匹配吗?
人们固有的假设是,如果像LifeStance Health Group这样的市销率被认为是合理的,公司的表现应该远远超过该行业。