With a median price-to-sales (or "P/S") ratio of close to 1.4x in the Hospitality industry in the United States, you could be forgiven for feeling indifferent about Life Time Group Holdings, Inc.'s (NYSE:LTH) P/S ratio of 1.3x. 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.
What Does Life Time Group Holdings' Recent Performance Look Like?
With revenue growth that's inferior to most other companies of late, Life Time Group Holdings has been relatively sluggish. One possibility is that the P/S ratio is moderate because investors think this lacklustre revenue performance will turn around. If not, then existing shareholders may be a little nervous about the viability of the share price.
If you'd like to see what analysts are forecasting going forward, you should check out our free report on Life Time Group Holdings.
How Is Life Time Group Holdings' Revenue Growth Trending?
Life Time Group Holdings' P/S ratio would be typical for a company that's only expected to deliver moderate growth, and importantly, perform in line with the industry.
Retrospectively, the last year delivered an exceptional 22% gain to the company's top line. The strong recent performance means it was also able to grow revenue by 134% in total over the last three years. 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 10% each year during the coming three years according to the ten analysts following the company. With the industry predicted to deliver 11% growth per annum, the company is positioned for a comparable revenue result.
With this information, we can see why Life Time Group Holdings is trading at a fairly similar P/S to the industry. It seems most investors are expecting to see average future growth and are only willing to pay a moderate amount for the stock.
The Bottom Line On Life Time Group Holdings' P/S
Using the price-to-sales ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects.
A Life Time Group Holdings' P/S seems about right to us given the knowledge that analysts are forecasting a revenue outlook that is similar to the Hospitality industry. Right now shareholders are comfortable with the P/S as they are quite confident future revenue won't throw up any surprises. If all things remain constant, the possibility of a drastic share price movement remains fairly remote.
Before you take the next step, you should know about the 3 warning signs for Life Time Group Holdings (1 is significant!) 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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米国のホスピタリティ産業における平均的な売上高比率である「P/S」の中央値が約1.4倍であることから、Life Time Group Holdings, Inc.(NYSE:LTH)のP/S比率が1.3倍であることに対して無関心でいることは許されます。ただし、投資家が明確な機会または高価な間違いを無視してP/Sを単に無視するのは賢明ではありません。
Life Time Group Holdingsの最近のパフォーマンスはどうですか?
最近の多くの他の企業に比べて売上高成長が劣っているため、Life Time Group Holdingsは比較的鈍い状態にあります。P/S比率が中程度である理由の1つは、投資家がこの不振な売上高のパフォーマンスが回復すると考えているためです。そうでない場合、既存株主は株価の持続可能性について少し神経質になるかもしれません。
将来の予測を知りたい場合は、Life Time Group Holdingsに関する無料レポートをチェックすることをお勧めします。
Life Time Group Holdingsの売上高成長はどのように推移していますか?
Life Time Group HoldingsのP/S比率は、控えめな成長を見込んでおり、重要なことに、業界と同じくらいのパフォーマンスを発揮する企業の典型的なものです。