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AMARIN STOCK CONVERSATION FREE
So you may wish to see this free collection of other companies that have reasonable P/E ratios and have grown earnings strongly. Of course, profitable companies with a history of great earnings growth are generally safer bets. Take a look at our free balance sheet analysis for Amarin with six simple checks on some of these key factors. The company's balance sheet is another key area for risk analysis. The company will need a change of fortune to justify the P/S rising higher in the future. Right now shareholders are accepting the low P/S as they concede future revenue probably won't provide any pleasant surprises. It seems most investors are expecting to see limited future growth and are only willing to pay a reduced amount for the stock.Īs expected, our analysis of Amarin's analyst forecasts confirms that the company's underwhelming revenue outlook is a major contributor to its low P/S. In light of this, it's understandable that Amarin's P/S sits below the majority of other companies. That's shaping up to be materially lower than the 102% each year growth forecast for the broader industry. Turning to the outlook, the next three years should generate growth of 7.3% per year as estimated by the five analysts watching the company. Therefore, it's fair to say the revenue growth recently has been undesirable for the company. The last three years don't look nice either as the company has shrunk revenue by 30% in aggregate. In reviewing the last year of financials, we were disheartened to see the company's revenues fell to the tune of 33%. In order to justify its P/S ratio, Amarin would need to produce anemic growth that's substantially trailing the industry. Is There Any Revenue Growth Forecasted For Amarin? Keen to find out how analysts think Amarin's future stacks up against the industry? In that case, our free report is a great place to start.
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. Perhaps the P/S remains low as investors think the prospects of strong revenue growth aren't on the horizon. While the industry has experienced revenue growth lately, Amarin's revenue has gone into reverse gear, which is not great. Ps-multiple-vs-industry How Has Amarin Performed Recently?
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