Unfortunately for some shareholders, the Jin Medical International Ltd. (NASDAQ:ZJYL) share price has dived 30% in the last thirty days, prolonging recent pain. Nonetheless, the last 30 days have barely left a scratch on the stock's annual performance, which is up a whopping 861%.
Although its price has dipped substantially, you could still be forgiven for thinking Jin Medical International is a stock to steer clear of with a price-to-sales ratios (or "P/S") of 21.6x, considering almost half the companies in the United States' Medical Equipment industry have P/S ratios below 3.2x. However, the P/S might be quite high for a reason and it requires further investigation to determine if it's justified.
NasdaqCM:ZJYL Price to Sales Ratio vs Industry May 25th 2024
What Does Jin Medical International's Recent Performance Look Like?
Revenue has risen at a steady rate over the last year for Jin Medical International, which is generally not a bad outcome. One possibility is that the P/S ratio is high because investors think this good 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.
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 Jin Medical International's earnings, revenue and cash flow.
How Is Jin Medical International's Revenue Growth Trending?
The only time you'd be truly comfortable seeing a P/S as steep as Jin Medical International's is when the company's growth is on track to outshine the industry decidedly.
Taking a look back first, we see that the company managed to grow revenues by a handy 3.3% last year. The latest three year period has also seen a 22% overall rise in revenue, aided somewhat by its short-term performance. So we can start by confirming that the company has actually done a good job of growing revenue over that time.
This is in contrast to the rest of the industry, which is expected to grow by 9.6% over the next year, materially higher than the company's recent medium-term annualised growth rates.
With this information, we find it concerning that Jin Medical International is trading at a P/S higher than the industry. Apparently many investors in the company are way more bullish than recent times would indicate and aren't willing to let go of their stock at any price. There's a good chance existing shareholders are setting themselves up for future disappointment if the P/S falls to levels more in line with recent growth rates.
The Bottom Line On Jin Medical International's P/S
Even after such a strong price drop, Jin Medical International's P/S still exceeds the industry median significantly. It's argued the price-to-sales ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator.
Our examination of Jin Medical International revealed its poor three-year revenue trends aren't detracting from the P/S as much as we though, given they look worse than current industry expectations. When we see slower than industry revenue growth but an elevated P/S, there's considerable risk of the share price declining, sending the P/S lower. Unless the recent medium-term conditions improve markedly, it's very challenging to accept these the share price as being reasonable.
Before you take the next step, you should know about the 2 warning signs for Jin Medical International that we have uncovered.
It's important to make sure you look for a great company, not just the first idea you come across. So if growing profitability aligns with your idea of a great company, take a peek at this free list of interesting companies with strong recent earnings growth (and a low P/E).
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残念ながら、一部の株主にとっては、Jin Medical International Ltd. (NASDAQ: ZJYL) の株価は過去30日間で30%下落し、最近の苦痛が長引いています。しかし、過去30日間は、株価の年間パフォーマンスにほとんど影響を与えず、861%上昇しています。
価格が大幅に下落したにもかかわらず、21.6倍の価格/売上高(「P/S」)比率を考慮して、アメリカの医療機器業界の半数近くの企業がP/S比率が3.2倍未満であることを考えると、Jin Medical Internationalは回避すべき株式だと思われるかもしれません。しかし、P/S比率がかなり高い理由がある可能性があり、正当化されるかどうかを判断するためには、さらなる調査が必要です。
NasdaqCM: ZJYLの価格/売上高比率と業種比較 2024年5月25日
Jin Medical Internationalの最近のパフォーマンスはどうですか?
Jin Medical Internationalの売上高は、前年より着実に増加しており、悪い結果ではありません。P/S比率が高い理由の1つは、この良好な売上高成長が近い将来、より広範囲な業界をアウトパフォームすることができると投資家が考えているためかもしれません。そうでない場合、現在の株主は株価の持続可能性について少し不安に感じるかもしれません。
アナリストの予測はありませんが、Jin Medical Internationalの収益、売上高、キャッシュフローについての無料レポートをチェックすることで、最近のトレンドが将来の会社のためにどのように設定されているかを確認できます。
Jin Medical Internationalの売上高成長はどのように推移していますか?
Jin Medical InternationalのP/S比率が急激に上昇しているのを見ると、同社の成長が業界に比べて明らかに優位になる方向に進んでいるときにのみ本当に快適に感じます。
これらの情報を考慮すると、Jin Medical Internationalが業界よりも高いP/Sで取引されていることは懸念されます。明らかに、同社の多くの投資家は最近の時代よりも強気であり、どんな価格でも株式を手放すつもりはないようです。最近の成長率に近いレベルとのP/Sが低下すれば、現存の株主は将来の失望を覚悟することができます。
Jin Medical InternationalのP/Sに関する結論
このように強い下落後であっても、Jin Medical InternationalのP/Sは業界平均をかなり上回っています。一部の業界においては、P/S比率は価値の劣った指標であると言われていますが、それは強力なビジネス感情指標となりえます。
Jin Medical Internationalの調査を行った結果、同社の過去3年間の売上高トレンドは、現在の業界の期待よりも悪いと思われますが、P/Sに与える影響はそれほど大きくありません。業界の成長率よりも遅い売上高成長と高いP/Sの場合、株価が下落してP/Sが下落するリスクが大きくあります。最近の中期的な状況が著しく改善しない限り、株価を理にかなったものとして受け入れることは非常に困難です。
次のステップを踏む前に、当社が発見したJin Medical Internationalの2つの警告信号について知る必要があります。
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。
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。