UiPath Inc. (NYSE:PATH) shareholders that were waiting for something to happen have been dealt a blow with a 45% share price drop in the last month. The drop over the last 30 days has capped off a tough year for shareholders, with the share price down 31% in that time.
In spite of the heavy fall in price, you could still be forgiven for feeling indifferent about UiPath's P/S ratio of 4.8x, since the median price-to-sales (or "P/S") ratio for the Software industry in the United States is also close to 4.1x. Although, it's not wise to simply ignore the P/S without explanation as investors may be disregarding a distinct opportunity or a costly mistake.
NYSE:PATH Price to Sales Ratio vs Industry June 20th 2024
How UiPath Has Been Performing
With revenue growth that's superior to most other companies of late, UiPath has been doing relatively well. It might be that many expect the strong revenue performance to wane, which has kept the P/S ratio from rising. If not, then existing shareholders have reason to be feeling optimistic about the future direction of the share price.
If you'd like to see what analysts are forecasting going forward, you should check out our free report on UiPath.
Is There Some Revenue Growth Forecasted For UiPath?
In order to justify its P/S ratio, UiPath would need to produce growth that's similar to the industry.
Retrospectively, the last year delivered an exceptional 23% gain to the company's top line. The latest three year period has also seen an excellent 99% overall rise in revenue, aided by its short-term performance. So we can start by confirming that the company has done a great job of growing revenue over that time.
Looking ahead now, revenue is anticipated to climb by 11% each year during the coming three years according to the analysts following the company. With the industry predicted to deliver 15% growth per year, the company is positioned for a weaker revenue result.
With this in mind, we find it intriguing that UiPath's P/S is closely matching its industry peers. It seems most investors are ignoring the fairly limited growth expectations and are willing to pay up for exposure to the stock. These shareholders may be setting themselves up for future disappointment if the P/S falls to levels more in line with the growth outlook.
What Does UiPath's P/S Mean For Investors?
Following UiPath's share price tumble, its P/S is just clinging on to the industry median P/S. Generally, our preference is to limit the use of the price-to-sales ratio to establishing what the market thinks about the overall health of a company.
Given that UiPath's revenue growth projections are relatively subdued in comparison to the wider industry, it comes as a surprise to see it trading at its current P/S ratio. When we see companies with a relatively weaker revenue outlook compared to the industry, we suspect the share price is at risk of declining, sending the moderate P/S lower. This places shareholders' investments at risk and potential investors in danger of paying an unnecessary premium.
We don't want to rain on the parade too much, but we did also find 3 warning signs for UiPath that you need to be mindful of.
Of course, profitable companies with a history of great earnings growth are generally safer bets. So you may wish to see this free collection of other companies that have reasonable P/E ratios and have grown earnings strongly.
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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.
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UiPath Inc. (紐約證券交易所代碼:PATH)的股東們正等待着一些事情的發生,但卻遭到了打擊,在過去的一個月裏,該公司的股價下跌了45%。過去30天的下跌結束了股東艱難的一年,當時股價下跌了31%。
儘管價格大幅下跌,但您對UiPath的4.8倍市盈率漠不關心仍然是可以原諒的,因爲美國軟件行業的中位市銷率(或 “市盈率”)也接近4.1倍。但是,不加解釋地忽略市銷率是不明智的,因爲投資者可能會忽視一個明顯的機會或一個代價高昂的錯誤。
紐約證券交易所:PATH 與行業的股價銷售比率 2024 年 6 月 20 日
UiPath 的表現如何
UiPath的收入增長最近優於大多數其他公司,因此表現相對較好。許多人可能預計強勁的收入表現將減弱,這阻礙了市銷率的上升。如果不是,那麼現有股東就有理由對股價的未來走向感到樂觀。
如果你想了解分析師對未來的預測,你應該查看我們關於UiPath的免費報告。
預計UiPath的收入會增長嗎?
爲了證明其市銷率是合理的,UiPath需要實現與行業相似的增長。
回顧過去,去年的公司收入實現了23%的驚人增長。在短期表現的推動下,最近三年的總體收入也實現了99%的出色增長。因此,我們可以首先確認該公司在這段時間內在增加收入方面做得很好。
根據關注該公司的分析師的說法,展望未來,收入預計將在未來三年內每年增長11%。預計該行業每年將實現15%的增長,因此該公司的收入業績將疲軟。
考慮到這一點,我們發現有趣的是,UiPath的市銷率與業內同行非常接近。看來大多數投資者無視相當有限的增長預期,願意爲股票敞口付出代價。如果市銷率降至更符合增長前景的水平,這些股東可能會爲未來的失望做好準備。
UiPath的市銷率對投資者意味着什麼?
在UiPath股價暴跌之後,其市盈率僅保持行業中位數。通常,我們傾向於限制使用市銷比來確定市場對公司整體健康狀況的看法。
鑑於與整個行業相比,UiPath的收入增長預測相對疲軟,看到其目前的市銷率交易令人驚訝。當我們看到與該行業相比收入前景相對疲軟的公司時,我們懷疑股價有下跌的風險,從而使溫和的市銷售率走低。這使股東的投資處於風險之中,潛在投資者面臨支付不必要的溢價的危險。
我們不想在遊行隊伍中下太多雨,但我們也發現了 UiPath 的 3 個警告標誌,你需要注意。
當然,具有良好收益增長曆史的盈利公司通常是更安全的選擇。因此,您可能希望看到這些免費收集的市盈率合理且收益增長強勁的其他公司。
對這篇文章有反饋嗎?對內容感到擔憂嗎?請直接聯繫我們。或者,也可以發送電子郵件至編輯團隊 (at) simplywallst.com。
Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。
對這篇文章有反饋嗎?擔心內容嗎?直接聯繫我們。或者,發送電子郵件至 editorial-team@simplywallst.com