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.
Streamline Health Solutions, Inc. (NASDAQ: STRM)の株を保有する人々は、最近の投資家のポートフォリオに与えた損害を修復するために、過去30日間で株価が46%回復したことを安心しています。しかし、過去1年間で74%以上の株価下落を改善するには、もっと頑張る必要があります。
株価が急騰しているにもかかわらず、Streamline Health Solutionsの株価対売上高(または「P/S」)比率は1倍で、米国の医療サービス業界の約半数の企業が2.1倍以上のP/S比率を持ち、5倍以上のP/S比率が一般的ですから、今は購入する価値があります。ただし、P/S比率が低いのには理由があるかもしれないため、正当化されているかどうかを判断するために、さらなる調査が必要です。
当社の最新分析をStreamline Health Solutionsでご覧ください。
Streamline Health Solutionsのパフォーマンス
Streamline Health Solutionsの収益が最近後退している一方で、他の多くの企業が収益成長を見ている中、Streamline Health Solutionsはもっと良い仕事ができるはずです。株式の将来の方向に興奮することができる現存株主がいるかどうかについては不明です。
Streamline Health Solutionsの将来を業界と比較したアナリストの見通しがどのようになっているか知りたいですか?その場合は、当社の無料レポートが非常に役立ちます。
Streamline Health Solutionsの売上高の成長傾向はどのようになっていますか?
Streamline Health SolutionsのP/S比率が業界と比較して低いという前提があります。
この観点から考えると、Streamline Health SolutionsのP/S比率が業界の競合他社に比べて見劣りする理由は明らかです。明らかに、企業が将来的にさらに繁栄することを目指すときに、多くの株主はこの会社を保有することに不安を感じていました。
Streamline Health SolutionsのP/S比率に関する結論
最新の株価上昇は、Streamline Health SolutionsのP/S比率を業界平均に近づけるには十分ではありませんでした。特定の業界では、株価対売上高比率は価値の比較において劣る尺度であると主張されていますが、それは強力なビジネスセンチメント指標になりえます。
予想通り、Streamline Health Solutionsのアナリスト予測の調査を行った結果、同社の収益の見通しが悪化していることが、低いP/S比率に対する原因になっているとわかりました。株主たちが同社の収益見通しに対して悲観的な考えを持っていることが、低迷するP/S比率の主な要因になっています。同社が将来的にP/S比率が上昇するほどに、運命が変わる必要があります。
また、Streamline Health Solutionsについて4つの警告サイン(うち2つは不安を覚えます!)を確認したことがあるので、考慮すべき事項です。
Streamline Health Solutionsのビジネスの強さに自信がない場合は、見逃している他の企業のために、堅固なビジネス基盤を持つ株式のインタラクティブなリストを探索してみることをお勧めします。