Antares Vision S.p.A. (BIT:AV) Looks Just Right With A 28% Price Jump

Antares Vision S.p.A. (BIT:AV) shares have continued their recent momentum with a 28% gain in the last month alone. But the last month did very little to improve the 52% share price decline over the last year.

In spite of the firm bounce in price, you could still be forgiven for feeling indifferent about Antares Vision's P/S ratio of 1.1x, since the median price-to-sales (or "P/S") ratio for the Machinery industry in Italy is also close to 0.8x. While this might not raise any eyebrows, if the P/S ratio is not justified investors could be missing out on a potential opportunity or ignoring looming disappointment.

Check out our latest analysis for Antares Vision

How Antares Vision Has Been Performing

While the industry has experienced revenue growth lately, Antares Vision's revenue has gone into reverse gear, which is not great. One possibility is that the P/S ratio is moderate because investors think this poor revenue performance will turn around. However, if this isn't the case, investors might get caught out paying too much for the stock.

Want the full picture on analyst estimates for the company? Then our free report on Antares Vision will help you uncover what's on the horizon.

Is There Some Revenue Growth Forecasted For Antares Vision?

The only time you'd be comfortable seeing a P/S like Antares Vision's is when the company's growth is tracking the industry closely.

Taking a look back first, the company's revenue growth last year wasn't something to get excited about as it posted a disappointing decline of 3.0%. Still, the latest three year period has seen an excellent 79% overall rise in revenue, in spite of its unsatisfying short-term performance. Although it's been a bumpy ride, it's still fair to say the revenue growth recently has been more than adequate for the company.

Looking ahead now, revenue is anticipated to climb by 5.3% per year during the coming three years according to the dual analysts following the company. With the industry predicted to deliver 4.3% growth each year, the company is positioned for a comparable revenue result.

With this information, we can see why Antares Vision is trading at a fairly similar P/S to the industry. It seems most investors are expecting to see average future growth and are only willing to pay a moderate amount for the stock.

The Bottom Line On Antares Vision's P/S

Its shares have lifted substantially and now Antares Vision's P/S is back within range of the industry median. We'd say the price-to-sales ratio's power isn't primarily as a valuation instrument but rather to gauge current investor sentiment and future expectations.

We've seen that Antares Vision maintains an adequate P/S seeing as its revenue growth figures match the rest of the industry. At this stage investors feel the potential for an improvement or deterioration in revenue isn't great enough to push P/S in a higher or lower direction. If all things remain constant, the possibility of a drastic share price movement remains fairly remote.

And what about other risks? Every company has them, and we've spotted 3 warning signs for Antares Vision (of which 1 is significant!) you should know about.

If companies with solid past earnings growth is up your alley, you may wish to see this free collection of other companies with strong earnings growth and low P/E ratios.

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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.