What You Can Learn From PowerFleet, Inc.'s (NASDAQ:AIOT) P/S

Simply Wall St.11-10

When you see that almost half of the companies in the Electronic industry in the United States have price-to-sales ratios (or "P/S") below 2.1x, PowerFleet, Inc. (NASDAQ:AIOT) looks to be giving off ...

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(NASDAQ:AIOT) looks to be giving off ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/tech/nasdaq-aiot/powerfleet/news/what-you-can-learn-from-powerfleet-incs-nasdaqaiot-ps\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>What You Can Learn From PowerFleet, Inc.'s (NASDAQ:AIOT) P/S</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhat You Can Learn From PowerFleet, Inc.'s (NASDAQ:AIOT) P/S\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-10 22:38 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/tech/nasdaq-aiot/powerfleet/news/what-you-can-learn-from-powerfleet-incs-nasdaqaiot-ps><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>When you see that almost half of the companies in the Electronic industry in the United States have price-to-sales ratios (or \"P/S\") below 2.1x, PowerFleet, Inc. (NASDAQ:AIOT) looks to be giving off ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/tech/nasdaq-aiot/powerfleet/news/what-you-can-learn-from-powerfleet-incs-nasdaqaiot-ps\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU2210149790.SGD","symbol_name":"Natixis Thematics Subscription Economy R/A SGD-H","start_time":0,"source_url":"https://simplywall.st/stocks/us/tech/nasdaq-aiot/powerfleet/news/what-you-can-learn-from-powerfleet-incs-nasdaqaiot-ps","article_id":"2482297238","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/8131000-choice1-main-header/1585186656975"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2482297238","pubTimestamp":1731249525,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"When you see that almost half of the companies in the Electronic industry in the United States have price-to-sales...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU2210149790.SGD":"Natixis Thematics Subscription Economy R/A SGD-H","IE00BKPKM429.USD":"NEUBERGER BERMAN GLOBAL SUSTAINABLE EQUITY \"A\" (USD) ACC","IE00B64PRP62.GBP":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (GBP) ACC",".IXIC":"NASDAQ Composite","IE00B3QW5Z07.USD":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (USD) ACC","BK4112":"金融交易所和数据","IE00BGHQF748.EUR":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (EUR) ACC","QLD":"纳指两倍做多ETF","NDAQ":"纳斯达克OMX交易所","SQQQ":"纳指三倍做空ETF","BK4585":"ETF&股票定投概念","PSQ":"纳指反向ETF","BK4157":"电子设备和仪器","TQQQ":"纳指三倍做多ETF","LU2095319765.USD":"Natixis Thematics Subscription Economy R/A USD","BK4588":"碎股","AIOT":"PowerFleet, Inc.","QID":"纳指两倍做空ETF","LU2210150020.SGD":"Natixis Thematics Subscription Economy R/A SGD"},"translate_title":"您可以从PowerFleet，Inc.（纳斯达克：AIOT）P/S中学到什么","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AIOT":1,".IXIC":1,"NDAQ":1,"TQQQ":0.6,"SQQQ":0.6,"QLD":0.6,"QID":0.6,"PSQ":0.6,"NQmain":0.6,"MNQmain":0.6},"content_text":"When you see that almost half of the companies in the Electronic industry in the United States have price-to-sales ratios (or \"P/S\") below 2.1x, PowerFleet, Inc. (NASDAQ:AIOT) looks to be giving off some sell signals with its 4x P/S ratio.   Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the elevated P/S.     Check out our latest analysis for PowerFleet NasdaqGM:AIOT Price to Sales Ratio vs Industry November 10th 2024 What Does PowerFleet's Recent Performance Look Like?  Recent times have been advantageous for PowerFleet as its revenues have been rising faster than most other companies.   It seems the market expects this form will continue into the future, hence the elevated P/S ratio.  However, if this isn't the case, investors might get caught out paying too much for the stock.      If you'd like to see what analysts are forecasting going forward, you should check out our free report on PowerFleet.  How Is PowerFleet's Revenue Growth Trending?   There's an inherent assumption that a company should outperform the industry for P/S ratios like PowerFleet's to be considered reasonable.   Taking a look back first, we see that the company grew revenue by an impressive 35% last year.    The latest three year period has also seen an excellent 49% overall rise in revenue, aided by its short-term performance.  Accordingly, shareholders would have definitely welcomed those medium-term rates of revenue growth.     Shifting to the future, estimates from the five analysts covering the company suggest revenue should grow by 108% over the next year.  That's shaping up to be materially higher than the 9.0% growth forecast for the broader industry.  With this information, we can see why PowerFleet is trading at such a high P/S compared to the industry.  Apparently shareholders aren't keen to offload something that is potentially eyeing a more prosperous future.    The Bottom Line On PowerFleet's P/S  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 established that PowerFleet maintains its high P/S on the strength of its forecasted revenue growth being higher than the the rest of the Electronic industry, as expected.  At this stage investors feel the potential for a deterioration in revenues is quite remote, justifying the elevated P/S ratio.  It's hard to see the share price falling strongly in the near future under these circumstances.      Having said that, be aware  PowerFleet is showing 1 warning sign in our investment analysis, you should know about.   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). New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.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.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2482297238"}