Those holding Streamline Health Solutions, Inc. (NASDAQ:STRM) shares would be relieved that the share price has rebounded 46% in the last thirty days, but it needs to keep going to repair the recent damage it has caused to investor portfolios. But the last month did very little to improve the 74% share price decline over the last year.
Although its price has surged higher, Streamline Health Solutions' price-to-sales (or "P/S") ratio of 1x might still make it look like a buy right now compared to the Healthcare Services industry in the United States, where around half of the companies have P/S ratios above 2.1x and even P/S above 5x are quite common. However, the P/S might be low for a reason and it requires further investigation to determine if it's justified.
View our latest analysis for Streamline Health Solutions
How Streamline Health Solutions Has Been Performing
Streamline Health Solutions could be doing better as its revenue has been going backwards lately while most other companies have been seeing positive revenue growth. Perhaps the P/S remains low as investors think the prospects of strong revenue growth aren't on the horizon. If this is the case, then existing shareholders will probably struggle to get excited about the future direction of the share price.
Keen to find out how analysts think Streamline Health Solutions' future stacks up against the industry? In that case, our free report is a great place to start.
How Is Streamline Health Solutions' Revenue Growth Trending?
There's an inherent assumption that a company should underperform the industry for P/S ratios like Streamline Health Solutions' to be considered reasonable.
Taking a look back first, we see that there was hardly any revenue growth to speak of for the company over the past year. Still, the latest three year period has seen an excellent 117% overall rise in revenue, in spite of its uninspiring short-term performance. So while the company has done a solid job in the past, it's somewhat concerning to see revenue growth decline as much as it has.
Turning to the outlook, the next three years should generate growth of 4.1% each year as estimated by the dual analysts watching the company. With the industry predicted to deliver 13% growth each year, the company is positioned for a weaker revenue result.
With this in consideration, its clear as to why Streamline Health Solutions' P/S is falling short industry peers. Apparently many shareholders weren't comfortable holding on while the company is potentially eyeing a less prosperous future.
The Bottom Line On Streamline Health Solutions' P/S
The latest share price surge wasn't enough to lift Streamline Health Solutions' P/S close to the industry median. 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.
As we suspected, our examination of Streamline Health Solutions' analyst forecasts revealed that its inferior revenue outlook is contributing to its low P/S. Shareholders' pessimism on the revenue prospects for the company seems to be the main contributor to the depressed P/S. The company will need a change of fortune to justify the P/S rising higher in the future.
It is also worth noting that we have found 4 warning signs for Streamline Health Solutions (2 make us uncomfortable!) that you need to take into consideration.
If you're unsure about the strength of Streamline Health Solutions' business, why not explore our interactive list of stocks with solid business fundamentals for some other companies you may have missed.
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.
那些持有Streamline Health Solutions, Inc.(納斯達克股票代碼:STRM)股票的人會鬆一口氣,因爲股價在過去三十天中反彈了46%,但它需要繼續修復最近對投資者投資組合造成的損失。但是上個月對改善去年74%的股價跌幅幾乎沒有起到任何作用。
儘管其價格飆升,但Streamline Health Solutions的1倍市售率(或 “市盈率”)與美國的醫療服務行業相比,目前仍可能看起來像買入。在美國,約有一半公司的市盈率高於2.1倍,甚至市盈率高於5倍也很常見。但是,市盈率低可能是有原因的,需要進一步調查以確定其是否合理。
查看我們對簡化健康解決方案的最新分析
Streamline 健康解決方案的表現如何
Streamline Health Solutions可能會做得更好,因爲其收入最近一直在倒退,而大多數其他公司的收入卻出現了正增長。也許市盈率仍然很低,因爲投資者認爲強勁收入增長的前景尚未到來。如果是這樣的話,那麼現有股東可能很難對股價的未來走向感到興奮。
想了解分析師如何看待Streamline Health Solutions的未來與行業對立嗎?在這種情況下,我們的免費報告是一個很好的起點。
Streamline Health Solutions的收入增長趨勢如何?
人們固有的假設是,如果像Streamline Health Solutions這樣的市盈率被認爲是合理的,公司的表現應該低於該行業。