AGM Group Holdings Inc. (NASDAQ:AGMH) shareholders won't be pleased to see that the share price has had a very rough month, dropping 45% and undoing the prior period's positive performance. The drop over the last 30 days has capped off a tough year for shareholders, with the share price down 49% in that time.
After such a large drop in price, AGM Group Holdings may be sending very bullish signals at the moment with its price-to-sales (or "P/S") ratio of 0.2x, since almost half of all companies in the Capital Markets industry in the United States have P/S ratios greater than 3x and even P/S higher than 8x are not unusual. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the highly reduced P/S.
How AGM Group Holdings Has Been Performing
AGM Group Holdings has been doing a good job lately as it's been growing revenue at a solid pace. Perhaps the market is expecting this acceptable revenue performance to take a dive, which has kept the P/S suppressed. If you like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's out of favour.
Although there are no analyst estimates available for AGM Group Holdings, take a look at this free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.
Do Revenue Forecasts Match The Low P/S Ratio?
There's an inherent assumption that a company should far underperform the industry for P/S ratios like AGM Group Holdings' to be considered reasonable.
If we review the last year of revenue growth, the company posted a worthy increase of 10%. While this performance is only fair, the company was still able to deliver immense revenue growth over the last three years. Therefore, it's fair to say the revenue growth recently has been superb for the company.
Comparing that recent medium-term revenue trajectory with the industry's one-year growth forecast of 9.5% shows it's noticeably more attractive.
With this information, we find it odd that AGM Group Holdings is trading at a P/S lower than the industry. It looks like most investors are not convinced the company can maintain its recent growth rates.
The Final Word
Having almost fallen off a cliff, AGM Group Holdings' share price has pulled its P/S way down as well. 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.
We're very surprised to see AGM Group Holdings currently trading on a much lower than expected P/S since its recent three-year growth is higher than the wider industry forecast. When we see strong revenue with faster-than-industry growth, we assume there are some significant underlying risks to the company's ability to make money which is applying downwards pressure on the P/S ratio. It appears many are indeed anticipating revenue instability, because the persistence of these recent medium-term conditions would normally provide a boost to the share price.
Before you take the next step, you should know about the 4 warning signs for AGM Group Holdings (1 is a bit concerning!) that we have uncovered.
If these risks are making you reconsider your opinion on AGM Group Holdings, explore our interactive list of high quality stocks to get an idea of what else is out there.
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.
AGM Group Holdings Inc.(納斯達克股票代碼:AGMH)股東不會很高興看到股價經歷了一個非常艱難的月份,下跌了45%,抵消了前一時期的積極表現。過去30天的下跌結束了股東艱難的一年,當時股價下跌了49%。
在價格大幅下跌之後,AGM Group Holdings目前可能會發出非常看漲的信號,其市銷率(或 “市盈率”)爲0.2倍,因爲美國資本市場行業幾乎有一半的公司市盈率大於3倍,甚至市盈率高於8倍的情況並不少見。但是,我們需要更深入地挖掘,以確定大幅降低市銷率是否有合理的基礎。
AGM 集團控股公司的表現如何
AGM Group Holdings最近表現不錯,收入一直在穩步增長。也許市場預計這種可接受的收入表現將下降,這使市銷率一直受到抑制。如果你喜歡這家公司,你希望情況並非如此,這樣你就有可能在它失寵的時候買入一些股票。
儘管沒有分析師對AGM Group Holdings的估計,但請看一下這個免費的數據豐富的可視化圖表,看看該公司的收益、收入和現金流是如何積累的。
收入預測與低市銷率相匹配嗎?
人們固有的假設是,如果像AGM Group Holdings這樣的市銷率被認爲是合理的,公司的表現應該遠遠低於該行業。
有了這些信息,我們感到奇怪的是,AGM Group Holdings的市銷率低於該行業。看來大多數投資者不相信該公司能夠維持其最近的增長率。
最後一句話
在幾乎跌下懸崖之後,AGM Group Holdings的股價也大幅下調了市銷率。有人認爲,在某些行業中,市銷率是衡量價值的較差指標,但它可以是一個有力的商業信心指標。
我們非常驚訝地看到,AGM Group Holdings目前的市銷率遠低於預期,因爲其最近三年的增長高於整個行業的預期。當我們看到強勁的收入和比行業更快的增長速度時,我們假設公司的盈利能力存在一些重大的潛在風險,這給市銷率帶來了下行壓力。看來許多人確實在預測收入不穩定,因爲近期這些中期狀況的持續下去通常會提振股價。
在你採取下一步行動之前,你應該了解AGM Group Holdings的4個警告信號(1個有點令人擔憂!)這是我們發現的。
如果這些風險讓你重新考慮你對AGM Group Holdings的看法,請瀏覽我們的高質量股票互動清單,了解還有什麼。