Despite an already strong run, Superior Group of Companies, Inc. (NASDAQ:SGC) shares have been powering on, with a gain of 26% in the last thirty days. The last month tops off a massive increase of 126% in the last year.
Although its price has surged higher, you could still be forgiven for feeling indifferent about Superior Group of Companies' P/S ratio of 0.6x, since the median price-to-sales (or "P/S") ratio for the Luxury industry in the United States is also close to 0.7x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.
How Superior Group of Companies Has Been Performing
Superior Group of Companies could be doing better as its revenue has been going backwards lately while most other companies have been seeing positive revenue growth. One possibility is that the P/S ratio is moderate because investors think this poor revenue performance will turn around. You'd really hope so, otherwise you're paying a relatively elevated price for a company with this sort of growth profile.
Want the full picture on analyst estimates for the company? Then our free report on Superior Group of Companies will help you uncover what's on the horizon.
How Is Superior Group of Companies' Revenue Growth Trending?
The only time you'd be comfortable seeing a P/S like Superior Group of Companies' is when the company's growth is tracking the industry closely.
Retrospectively, the last year delivered a frustrating 2.6% decrease to the company's top line. As a result, revenue from three years ago have also fallen 3.8% overall. So unfortunately, we have to acknowledge that the company has not done a great job of growing revenue over that time.
Shifting to the future, estimates from the two analysts covering the company suggest revenue should grow by 4.4% over the next year. Meanwhile, the rest of the industry is forecast to expand by 5.3%, which is not materially different.
In light of this, it's understandable that Superior Group of Companies' P/S sits in line with the majority of other companies. Apparently shareholders are comfortable to simply hold on while the company is keeping a low profile.
What We Can Learn From Superior Group of Companies' P/S?
Superior Group of Companies appears to be back in favour with a solid price jump bringing its P/S back in line with other companies in 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.
A Superior Group of Companies' P/S seems about right to us given the knowledge that analysts are forecasting a revenue outlook that is similar to the Luxury industry. At this stage investors feel the potential for an improvement or deterioration in revenue isn't great enough to push P/S in a higher or lower direction. Unless these conditions change, they will continue to support the share price at these levels.
You should always think about risks. Case in point, we've spotted 1 warning sign for Superior Group of Companies you should be aware of.
If these risks are making you reconsider your opinion on Superior Group of Companies, 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.
尽管已经表现强劲,但Superior Group of Companies, Inc.(纳斯达克股票代码:SGC)的股价一直在上涨,在过去的三十天中上涨了26%。上个月以去年126%的大幅增长告终。
尽管其价格飙升,但您仍然对Superior Group of Companies的0.6倍市盈率漠不关心,这是可以原谅的,因为美国奢侈品行业的中位数市销率(或 “市盈率”)也接近0.7倍。但是,如果市销率没有合理的基础,投资者可能会忽略明显的机会或潜在的挫折。
卓越集团的表现如何
Superior Group of Companies可能会做得更好,因为其收入最近一直在倒退,而大多数其他公司的收入却出现了正增长。一种可能性是市销率适中,因为投资者认为这种糟糕的收入表现将得到扭转。你真的希望如此,否则你会为一家具有这种增长概况的公司付出相对较高的代价。
想全面了解分析师对公司的估计吗?然后,我们关于Superior Group of Companies的免费报告将帮助您发现即将发生的事情。
卓越集团公司的收入增长趋势如何?
你唯一能放心地看到像Superior Group of Companies这样的市销率的时候是公司的增长密切关注行业的时候。