To the annoyance of some shareholders, Expro Group Holdings N.V. (NYSE:XPRO) shares are down a considerable 26% in the last month, which continues a horrid run for the company. The drop over the last 30 days has capped off a tough year for shareholders, with the share price down 21% in that time.
Although its price has dipped substantially, you could still be forgiven for feeling indifferent about Expro Group Holdings' P/S ratio of 0.9x, since the median price-to-sales (or "P/S") ratio for the Energy Services industry in the United States is about the same. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.
How Expro Group Holdings Has Been Performing
With revenue growth that's superior to most other companies of late, Expro Group Holdings has been doing relatively well. One possibility is that the P/S ratio is moderate because investors think this strong revenue performance might be about to tail off. If the company manages to stay the course, then investors should be rewarded with a share price that matches its revenue figures.
Want the full picture on analyst estimates for the company? Then our free report on Expro Group Holdings will help you uncover what's on the horizon.
Do Revenue Forecasts Match The P/S Ratio?
In order to justify its P/S ratio, Expro Group Holdings would need to produce growth that's similar to the industry.
Retrospectively, the last year delivered an exceptional 15% gain to the company's top line. Pleasingly, revenue has also lifted 146% in aggregate from three years ago, thanks to the last 12 months of growth. So we can start by confirming that the company has done a great job of growing revenue over that time.
Shifting to the future, estimates from the five analysts covering the company suggest revenue should grow by 7.8% per annum over the next three years. That's shaping up to be materially higher than the 4.3% per year growth forecast for the broader industry.
In light of this, it's curious that Expro Group Holdings' P/S sits in line with the majority of other companies. Apparently some shareholders are skeptical of the forecasts and have been accepting lower selling prices.
What Does Expro Group Holdings' P/S Mean For Investors?
Following Expro Group Holdings' share price tumble, its P/S is just clinging on to the industry median P/S. While the price-to-sales ratio shouldn't be the defining factor in whether you buy a stock or not, it's quite a capable barometer of revenue expectations.
Looking at Expro Group Holdings' analyst forecasts revealed that its superior revenue outlook isn't giving the boost to its P/S that we would've expected. When we see a strong revenue outlook, with growth outpacing the industry, we can only assume potential uncertainty around these figures are what might be placing slight pressure on the P/S ratio. This uncertainty seems to be reflected in the share price which, while stable, could be higher given the revenue forecasts.
Having said that, be aware Expro Group Holdings is showing 2 warning signs in our investment analysis, you should know about.
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.
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.
令一些股东烦恼的是,Expro Group Holdings NV.(纽约证券交易所代码:XPRO)的股价在上个月下跌了26%,这延续了该公司的糟糕表现。过去30天的下跌结束了股东艰难的一年,当时股价下跌了21%。
尽管其价格已大幅下跌,但您对Expro Group Holdings0.9倍的市销率漠不关心仍然是可以原谅的,因为美国能源服务行业的中位市销率(或 “市销率”)大致相同。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。
Expro 集团控股公司的表现如何
近来,Expro Group Holdings的收入增长优于大多数其他公司,因此表现相对较好。一种可能性是市销率适中,因为投资者认为这种强劲的收入表现可能即将结束。如果公司设法坚持下去,那么投资者应该获得与其收入数字相匹配的股价作为奖励。
有鉴于此,奇怪的是,Expro Group Holdings的市销率与其他大多数公司持平。显然,一些股东对预测持怀疑态度,并一直在接受较低的销售价格。
Expro集团控股公司的市销率对投资者意味着什么?
继Expro Group Holdings股价暴跌之后,其市盈率一直保持在行业市盈率中位数水平。尽管市销率不应成为决定您是否买入股票的决定性因素,但它却是衡量收入预期的有力晴雨表。
从Expro Group Holdings的分析师预测来看,其优异的收入前景并没有像我们预期的那样提振其市销率。当我们看到强劲的收入前景,增长速度超过行业时,我们只能假设围绕这些数字的潜在不确定性可能会给市销率带来轻微的压力。这种不确定性似乎反映在股价上,尽管股价稳定,但鉴于收入预测,股价可能会更高。
话虽如此,请注意,在我们的投资分析中,Expro Group Holdings显示出两个警告信号,你应该知道。