With a median price-to-sales (or "P/S") ratio of close to 0.9x in the Energy Services industry in the United States, you could be forgiven for feeling indifferent about Expro Group Holdings N.V.'s (NYSE:XPRO) P/S ratio of 1.4x. 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.
How Expro Group Holdings Has Been Performing
Recent times haven't been great for Expro Group Holdings as its revenue has been rising slower than most other companies. It might be that many expect the uninspiring revenue performance to strengthen positively, which has kept the P/S ratio from falling. If not, then existing shareholders may be a little nervous about the viability of the share price.
Keen to find out how analysts think Expro Group Holdings' future stacks up against the industry? In that case, our free report is a great place to start.
How Is Expro Group Holdings' Revenue Growth Trending?
Expro 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.
If we review the last year of revenue growth, the company posted a terrific increase of 18%. Pleasingly, revenue has also lifted 124% in aggregate from three years ago, thanks to the last 12 months of growth. Accordingly, shareholders would have definitely welcomed those medium-term rates of revenue growth.
Looking ahead now, revenue is anticipated to climb by 7.2% each year during the coming three years according to the six analysts following the company. Meanwhile, the rest of the industry is forecast to expand by 8.9% per year, which is not materially different.
With this information, we can see why Expro Group Holdings is trading at a fairly similar P/S to the industry. Apparently shareholders are comfortable to simply hold on while the company is keeping a low profile.
What Does Expro Group Holdings' P/S Mean For Investors?
Generally, our preference is to limit the use of the price-to-sales ratio to establishing what the market thinks about the overall health of a company.
Our look at Expro Group Holdings' revenue growth estimates show that its P/S is about what we expect, as both metrics follow closely with the industry averages. Right now shareholders are comfortable with the P/S as they are quite confident future revenue won't throw up any surprises. Unless these conditions change, they will continue to support the share price at these levels.
The company's balance sheet is another key area for risk analysis. Our free balance sheet analysis for Expro Group Holdings with six simple checks will allow you to discover any risks that could be an issue.
If these risks are making you reconsider your opinion on Expro 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.
由于美国能源服务行业的中位数市销率(或 “市销率”)接近0.9倍,你对Expro Group Holdings NV漠不关心是可以原谅的。”s(纽约证券交易所代码:XPRO)市销率为1.4倍。但是,不加解释地忽略市销率是不明智的,因为投资者可能会忽视一个明显的机会或一个代价高昂的错误。
Expro 集团控股公司的表现如何
最近对Expro Group Holdings来说并不是一件好事,因为其收入的增长速度比大多数其他公司都要慢。许多人可能预计,平淡无奇的收入表现将积极增强,这阻止了市销售率的下降。如果不是,那么现有股东可能会对股价的可行性有些紧张。
想了解分析师如何看待Expro Group Holdings的未来与该行业的对立吗?在这种情况下,我们的免费报告是一个很好的起点。
Expro Group Holdings的收入增长趋势如何?
Expro Group Holdings的市销率对于一家预计只会实现适度增长且重要的是表现与行业持平的公司来说是典型的。