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    What You Can Learn From Traeger, Inc.'s (NYSE:COOK) P/S After Its 29% Share Price Crash

    Simply Wall St·03/14/2025 10:41:47
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    To the annoyance of some shareholders, Traeger, Inc. (NYSE:COOK) shares are down a considerable 29% in the last month, which continues a horrid run for the company. The drop over the last 30 days has capped off a tough year for shareholders, with the share price down 26% in that time.

    Although its price has dipped substantially, there still wouldn't be many who think Traeger's price-to-sales (or "P/S") ratio of 0.4x is worth a mention when the median P/S in the United States' Consumer Durables industry is similar at about 0.6x. 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.

    Check out our latest analysis for Traeger

    ps-multiple-vs-industry
    NYSE:COOK Price to Sales Ratio vs Industry March 14th 2025

    How Traeger Has Been Performing

    Traeger hasn't been tracking well recently as its declining revenue compares poorly to other companies, which have seen some growth in their revenues on average. It might be that many expect the dour revenue performance to strengthen positively, which has kept the P/S from falling. You'd really hope so, otherwise you're paying a relatively elevated price for a company with this sort of growth profile.

    Keen to find out how analysts think Traeger's future stacks up against the industry? In that case, our free report is a great place to start.

    Is There Some Revenue Growth Forecasted For Traeger?

    Traeger's P/S ratio would be typical for a company that's only expected to deliver moderate growth, and importantly, perform in line with the industry.

    Taking a look back first, we see that there was hardly any revenue growth to speak of for the company over the past year. The lack of growth did nothing to help the company's aggregate three-year performance, which is an unsavory 23% drop in revenue. So unfortunately, we have to acknowledge that the company has not done a great job of growing revenue over that time.

    Shifting to the future, estimates from the nine analysts covering the company suggest revenue should grow by 5.3% per year over the next three years. With the industry predicted to deliver 6.5% growth per year, the company is positioned for a comparable revenue result.

    With this information, we can see why Traeger 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 Traeger's P/S

    Traeger's plummeting stock price has brought its P/S back to a similar region as the rest of the industry. Typically, we'd caution against reading too much into price-to-sales ratios when settling on investment decisions, though it can reveal plenty about what other market participants think about the company.

    Our look at Traeger's revenue growth estimates show that its P/S is about what we expect, as both metrics follow closely with the industry averages. 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.

    A lot of potential risks can sit within a company's balance sheet. Our free balance sheet analysis for Traeger with six simple checks will allow you to discover any risks that could be an issue.

    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).