Compañía Minera Autlán, S.A.B. de C.V. (BMV:AUTLANB) Stock Rockets 27% But Many Are Still Ignoring The Company

Compañía Minera Autlán, S.A.B. de C.V. (BMV:AUTLANB) shareholders would be excited to see that the share price has had a great month, posting a 27% gain and recovering from prior weakness. Unfortunately, the gains of the last month did little to right the losses of the last year with the stock still down 28% over that time.

In spite of the firm bounce in price, given about half the companies operating in Mexico's Metals and Mining industry have price-to-sales ratios (or "P/S") above 1.9x, you may still consider Compañía Minera Autlán. de as an attractive investment with its 0.4x P/S ratio. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the reduced P/S.

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View our latest analysis for Compañía Minera Autlán. de

How Has Compañía Minera Autlán. de Performed Recently?

Compañía Minera Autlán. de 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. If you still like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's out of favour.

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Is There Any Revenue Growth Forecasted For Compañía Minera Autlán. de?

The only time you'd be truly comfortable seeing a P/S as low as Compañía Minera Autlán. de's is when the company's growth is on track to lag the industry.

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 2.7%. This means it has also seen a slide in revenue over the longer-term as revenue is down 39% in total over the last three years. Therefore, it's fair to say the revenue growth recently has been undesirable for the company.

Looking ahead now, revenue is anticipated to climb by 3.6% during the coming year according to the sole analyst following the company. Meanwhile, the rest of the industry is forecast to expand by 2.7%, which is not materially different.

With this information, we find it odd that Compañía Minera Autlán. de is trading at a P/S lower than the industry. It may be that most investors are not convinced the company can achieve future growth expectations.

The Bottom Line On Compañía Minera Autlán. de's P/S

Despite Compañía Minera Autlán. de's share price climbing recently, its P/S still lags most other companies. 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.

It looks to us like the P/S figures for Compañía Minera Autlán. de remain low despite growth that is expected to be in line with other companies in the industry. When we see middle-of-the-road revenue growth like this, we assume it must be the potential risks that are what is placing pressure on the P/S ratio. Perhaps investors are concerned that the company could underperform against the forecasts over the near term.

Plus, you should also learn about this 1 warning sign we've spotted with Compañía Minera Autlán. de.

It's important to make sure you look for a great company, not just the first idea you come across. So if growing profitability aligns with your idea of a great company, take a peek at this free list of interesting companies with strong recent earnings growth (and a low P/E).

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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.