The Streamline Health Solutions, Inc. (NASDAQ:STRM) share price has softened a substantial 29% over the previous 30 days, handing back much of the gains the stock has made lately. For any long-term shareholders, the last month ends a year to forget by locking in a 84% share price decline.
After such a large drop in price, Streamline Health Solutions may be sending bullish signals at the moment with its price-to-sales (or "P/S") ratio of 0.8x, since almost half of all companies in the Healthcare Services industry in the United States have P/S ratios greater than 1.9x and even P/S higher than 5x are not unusual. However, the P/S might be low for a reason and it requires further investigation to determine if it's justified.
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. It seems that many are expecting the poor revenue performance to persist, which has repressed the P/S ratio. So while you could say the stock is cheap, investors will be looking for improvement before they see it as good value.
Want the full picture on analyst estimates for the company? Then our free report on Streamline Health Solutions will help you uncover what's on the horizon.
What Are Revenue Growth Metrics Telling Us About The Low P/S?
The only time you'd be truly comfortable seeing a P/S as low as Streamline Health Solutions' is when the company's growth is on track to lag the industry.
Retrospectively, the last year delivered virtually the same number to the company's top line as the year before. Although pleasingly revenue has lifted 117% in aggregate from three years ago, notwithstanding the last 12 months. 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.
Looking ahead now, revenue is anticipated to climb by 4.1% per year during the coming three years according to the two analysts following the company. That's shaping up to be materially lower than the 14% per annum growth forecast for the broader industry.
In light of this, it's understandable that Streamline Health Solutions' P/S sits below the majority of other companies. It seems most investors are expecting to see limited future growth and are only willing to pay a reduced amount for the stock.
The Final Word
Streamline Health Solutions' P/S has taken a dip along with its share price. 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.
As expected, our analysis of Streamline Health Solutions' analyst forecasts confirms that the company's underwhelming revenue outlook is a major contributor 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. Unless these conditions improve, they will continue to form a barrier for the share price around these levels.
Before you settle on your opinion, we've discovered 4 warning signs for Streamline Health Solutions (1 doesn't sit too well with us!) that you should be aware of.
If strong companies turning a profit tickle your fancy, then you'll want to check out this free list of interesting companies that trade on a low P/E (but have proven they can grow earnings).
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社(NASDAQ:STRM)の株価は、過去30日間に29%の下落を記録し、株価が最近上昇した分の多くを返却している。長期の株主にとって、前月末は84%の株価下落をロックすることで忘れる年を終わらせる。
株価が大幅に下落した後、Streamline Health Solutionsは、「P/S」比率が0.8xであるため、健康サービス業界のほぼ半数の企業のP/S比率が1.9x以上であり、P/S比率が5xを超えることも珍しくないため、現在強気のシグナルを発信している可能性がある。ただし、P/S比率は理由があるかもしれず、正当化されているかどうかを判断するにはさらなる調査が必要です。
Streamline Health Solutionsの業績はどうなっているのか
Streamline Health Solutionsは売上高が最近後退しており、他の多くの企業が売上高成長を見ている中で、もっと良くなる可能性がある。多くの人々が貧しい売上性能が持続することを予想しており、これがP/S比率を抑圧しています。したがって、株式が安いと言えるかもしれませんが、改善を見る前に投資家は価値があると見なすでしょう。
会社のアナリスト予測の完全な情報を知りたい場合は、無料レポート「Streamline Health Solutionsの今後についての情報」をお読みください。
低いP/S比率から売上成長メトリックスが私たちに伝えること
Streamline Health Solutionsを含め、業界を追いかけるために買い上げ量に追いつくことができる場合に限り、P/S比率が低くて本当に快適に感じる時があります。
これに基づいて、Streamline Health SolutionsのP/Sが他の多くの企業よりも低いと理解できます。ほとんどの投資家は、限られた将来の成長を見込んでおり、株式の価格を削減することにしか興味を持っていないためです。
結論
Streamline Health SolutionsのP/Sは、株価とともに下落しました。株価比率が株を購入するかどうかを決定する限定的な要素であっても、それは収益の期待感のかなり有能な測定器です。
Streamline Health Solutionsのアナリスト予測を分析した結果、同社の期待を下回る収益見通しがその低P/Sの主な要因であることが予想されます。会社の収益見通しに対する株主の悲観主義は、押し込められたP/Sの主な原因です。これらの状況が改善しない限り、これらのレベルで株価に障壁を形成し続けるでしょう。