Positive Sentiment Still Eludes Vivos Therapeutics, Inc. (NASDAQ:VVOS) Following 26% Share Price Slump

Unfortunately for some shareholders, the Vivos Therapeutics, Inc. (NASDAQ:VVOS) share price has dived 26% in the last thirty days, prolonging recent pain. Instead of being rewarded, shareholders who have already held through the last twelve months are now sitting on a 15% share price drop.

Even after such a large drop in price, you could still be forgiven for feeling indifferent about Vivos Therapeutics' P/S ratio of 1x, since the median price-to-sales (or "P/S") ratio for the Healthcare industry in the United States is also close to 1.1x. 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.

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Check out our latest analysis for Vivos Therapeutics

How Vivos Therapeutics Has Been Performing

Recent revenue growth for Vivos Therapeutics has been in line with the industry. It seems that many are expecting the mediocre revenue performance to persist, which has held the P/S ratio back. Those who are bullish on Vivos Therapeutics will be hoping that revenue performance can pick up, so that they can pick up the stock at a slightly lower valuation.

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What Are Revenue Growth Metrics Telling Us About The P/S?

In order to justify its P/S ratio, Vivos Therapeutics would need to produce growth that's similar to the industry.

Retrospectively, the last year delivered a decent 8.9% gain to the company's revenues. However, this wasn't enough as the latest three year period has seen an unpleasant 11% overall drop in revenue. 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 20% during the coming year according to the only analyst following the company. Meanwhile, the rest of the industry is forecast to only expand by 10%, which is noticeably less attractive.

With this information, we find it interesting that Vivos Therapeutics is trading at a fairly similar P/S compared to the industry. It may be that most investors aren't convinced the company can achieve future growth expectations.

What We Can Learn From Vivos Therapeutics' P/S?

Vivos Therapeutics' plummeting stock price has brought its P/S back to a similar region as the rest of the industry. 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.

We've established that Vivos Therapeutics currently trades on a lower than expected P/S since its forecasted revenue growth is higher than the wider industry. When we see a strong revenue outlook, with growth outpacing the industry, we can only assume potential uncertainty around these figures are what might be placing slight pressure on the P/S ratio. However, if you agree with the analysts' forecasts, you may be able to pick up the stock at an attractive price.

You should always think about risks. Case in point, we've spotted 4 warning signs for Vivos Therapeutics you should be aware of, and 1 of them is potentially serious.

If these risks are making you reconsider your opinion on Vivos Therapeutics, explore our interactive list of high quality stocks to get an idea of what else is out there.

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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.