Investors Still Waiting For A Pull Back In Antin Infrastructure Partners SAS (EPA:ANTIN)

With a price-to-sales (or "P/S") ratio of 7.6x Antin Infrastructure Partners SAS (EPA:ANTIN) may be sending bearish signals at the moment, given that almost half of all Capital Markets companies in France have P/S ratios under 6x and even P/S lower than 1.7x are not unusual. However, the P/S might be high for a reason and it requires further investigation to determine if it's justified.

See our latest analysis for Antin Infrastructure Partners SAS

How Antin Infrastructure Partners SAS Has Been Performing

With revenue growth that's inferior to most other companies of late, Antin Infrastructure Partners SAS has been relatively sluggish. It might be that many expect the uninspiring revenue performance to recover significantly, which has kept the P/S ratio from collapsing. You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason.

Keen to find out how analysts think Antin Infrastructure Partners SAS' future stacks up against the industry? In that case, our free report is a great place to start.

How Is Antin Infrastructure Partners SAS' Revenue Growth Trending?

Antin Infrastructure Partners SAS' P/S ratio would be typical for a company that's expected to deliver solid growth, and importantly, perform better than the industry.

Taking a look back first, we see that the company grew revenue by an impressive 32% last year. The latest three year period has also seen an excellent 57% overall rise in revenue, aided by its short-term performance. So we can start by confirming that the company has done a great job of growing revenue over that time.

Shifting to the future, estimates from the eight analysts covering the company suggest revenue should grow by 17% per year over the next three years. That's shaping up to be materially higher than the 4.2% each year growth forecast for the broader industry.

With this information, we can see why Antin Infrastructure Partners SAS is trading at such a high P/S compared to the industry. It seems most investors are expecting this strong future growth and are willing to pay more for the stock.

What Does Antin Infrastructure Partners SAS' P/S Mean For Investors?

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.

Our look into Antin Infrastructure Partners SAS shows that its P/S ratio remains high on the merit of its strong future revenues. It appears that shareholders are confident in the company's future revenues, which is propping up the P/S. Unless the analysts have really missed the mark, these strong revenue forecasts should keep the share price buoyant.

Before you settle on your opinion, we've discovered 3 warning signs for Antin Infrastructure Partners SAS (1 shouldn't be ignored!) that you should be aware of.

If you're unsure about the strength of Antin Infrastructure Partners SAS' business, why not explore our interactive list of stocks with solid business fundamentals for some other companies you may have missed.

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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.