TL Natural Gas Holdings Limited (HKG:8536) shares have had a really impressive month, gaining 32% after a shaky period beforehand. The last 30 days were the cherry on top of the stock's 515% gain in the last year, which is nothing short of spectacular.
Since its price has surged higher, given close to half the companies operating in Hong Kong's Specialty Retail industry have price-to-sales ratios (or "P/S") below 0.4x, you may consider TL Natural Gas Holdings as a stock to potentially avoid with its 1.6x 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 as high as it is.
What Does TL Natural Gas Holdings' P/S Mean For Shareholders?
TL Natural Gas Holdings has been doing a good job lately as it's been growing revenue at a solid pace. One possibility is that the P/S ratio is high because investors think this respectable revenue growth will be enough to outperform the broader industry in the near future. If not, then existing shareholders may be a little nervous about the viability of the share price.
Although there are no analyst estimates available for TL Natural Gas Holdings, take a look at this free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.
How Is TL Natural Gas Holdings' Revenue Growth Trending?
There's an inherent assumption that a company should outperform the industry for P/S ratios like TL Natural Gas Holdings' to be considered reasonable.
If we review the last year of revenue growth, the company posted a terrific increase of 15%. Pleasingly, revenue has also lifted 53% in aggregate from three years ago, thanks to the last 12 months of growth. Accordingly, shareholders would have definitely welcomed those medium-term rates of revenue growth.
Comparing that to the industry, which is predicted to deliver 15% growth in the next 12 months, the company's momentum is pretty similar based on recent medium-term annualised revenue results.
With this information, we find it interesting that TL Natural Gas Holdings is trading at a high P/S compared to the industry. Apparently many investors in the company are more bullish than recent times would indicate and aren't willing to let go of their stock right now. Although, additional gains will be difficult to achieve as a continuation of recent revenue trends would weigh down the share price eventually.
What Does TL Natural Gas Holdings' P/S Mean For Investors?
TL Natural Gas Holdings' P/S is on the rise since its shares have risen strongly. 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 didn't expect to see TL Natural Gas Holdings trade at such a high P/S considering its last three-year revenue growth has only been on par with the rest of the industry. Right now we are uncomfortable with the high P/S as this revenue performance isn't likely to support such positive sentiment for long. If recent medium-term revenue trends continue, it will place shareholders' investments at risk and potential investors in danger of paying an unnecessary premium.
Don't forget that there may be other risks. For instance, we've identified 4 warning signs for TL Natural Gas Holdings (2 can't be ignored) you should be aware of.
If strong companies turning a profit tickle your fancy, then you'll want to check out this free list of interesting companies that trade on a low P/E (but have proven they can grow earnings).
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TL Natural Gas Holdings Limited(HKG: 8536)的股价表现非常令人印象深刻,在经历了动荡时期之后上涨了32%。在过去的30天里,该股去年上涨了515%,简直太惊人了。
由于TL Natural Gas Holdings的价格飙升,鉴于近一半在香港专业零售行业运营的公司的市销率(或 “市销率”)低于0.4倍,您可以将TL Natural Gas Holdings作为可能避开的股票,其市销率为1.6倍。但是,仅按面值计算市销率是不明智的,因为可以解释其为何如此之高。
TL Natural Gas Holdings的市销率对股东意味着什么?
TL Natural Gas Holdings最近表现不错,收入一直在稳步增长。一种可能性是市销率很高,因为投资者认为这种可观的收入增长足以在不久的将来跑赢整个行业。如果不是,那么现有股东可能会对股价的可行性有些紧张。
尽管没有分析师对TL Natural Gas Holdings的估计,但请看一下这个免费的数据丰富的可视化图表,看看该公司如何积累收益、收入和现金流。
TL Natural Gas Holdings的收入增长趋势如何?
人们固有的假设是,如果像TL Natural Gas Holdings这样的市销率被认为是合理的,公司的表现应该优于该行业。
有了这些信息,我们发现有趣的是,与行业相比,TL Natural Gas Holdings的市销率很高。显然,该公司的许多投资者比最近所表示的更加看涨,并且不愿意立即放弃股票。但是,由于近期收入趋势的延续最终将压低股价,因此很难实现额外的收益。
TL Natural Gas Holdings的市销率对投资者意味着什么?
自股价强劲上涨以来,TL Natural Gas Holdings的市销率一直在上升。我们可以说,市销比率的力量主要不是作为一种估值工具,而是用来衡量当前的投资者情绪和未来预期。
考虑到TL Natural Gas Holdings过去三年的收入增长仅与该行业其他公司持平,我们没想到TL Natural Gas Holdings会以如此高的市销率进行交易。目前,我们对高市销率感到不舒服,因为这种收入表现不太可能长期支撑这种积极情绪。如果最近的中期收入趋势持续下去,将使股东的投资面临风险,潜在投资者面临支付不必要的溢价的危险。