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Solution Dynamics (NZSE:SDL) PS Ratio : 0.52 (As of May. 24, 2024)


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What is Solution Dynamics PS Ratio?

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Solution Dynamics's share price is NZ$1.37. Solution Dynamics's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was NZ$2.65. Hence, Solution Dynamics's PS Ratio for today is 0.52.

Good Sign:

Solution Dynamics Ltd stock PS Ratio (=0.51) is close to 10-year low of 0.51

The historical rank and industry rank for Solution Dynamics's PS Ratio or its related term are showing as below:

NZSE:SDL' s PS Ratio Range Over the Past 10 Years
Min: 0.18   Med: 1.11   Max: 2.77
Current: 0.52

During the past 13 years, Solution Dynamics's highest PS Ratio was 2.77. The lowest was 0.18. And the median was 1.11.

NZSE:SDL's PS Ratio is ranked better than
86.74% of 2753 companies
in the Software industry
Industry Median: 2.28 vs NZSE:SDL: 0.52

Solution Dynamics's Revenue per Sharefor the six months ended in Dec. 2023 was NZ$1.52. Its Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was NZ$2.65.

Warning Sign:

Solution Dynamics Ltd revenue per share is in decline over the past 12 months.

During the past 12 months, the average Revenue per Share Growth Rate of Solution Dynamics was -2.40% per year. During the past 3 years, the average Revenue per Share Growth Rate was 7.60% per year. During the past 5 years, the average Revenue per Share Growth Rate was 13.40% per year. During the past 10 years, the average Revenue per Share Growth Rate was 15.30% per year.

During the past 13 years, Solution Dynamics's highest 3-Year average Revenue per Share Growth Rate was 20.00% per year. The lowest was -13.70% per year. And the median was 7.60% per year.

Back to Basics: PS Ratio


Solution Dynamics PS Ratio Historical Data

The historical data trend for Solution Dynamics's PS Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Solution Dynamics PS Ratio Chart

Solution Dynamics Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.05 1.16 1.32 0.85 0.77

Solution Dynamics Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
PS Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - 0.85 - 0.77 -

Competitive Comparison of Solution Dynamics's PS Ratio

For the Software - Application subindustry, Solution Dynamics's PS Ratio, along with its competitors' market caps and PS Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Solution Dynamics's PS Ratio Distribution in the Software Industry

For the Software industry and Technology sector, Solution Dynamics's PS Ratio distribution charts can be found below:

* The bar in red indicates where Solution Dynamics's PS Ratio falls into.



Solution Dynamics PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

Solution Dynamics's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=1.37/2.646
=0.52

Solution Dynamics's Share Price of today is NZ$1.37.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Solution Dynamics's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was NZ$2.65.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

It can also be calculated from the numbers for the whole company:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


Solution Dynamics  (NZSE:SDL) PS Ratio Explanation

The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


Solution Dynamics PS Ratio Related Terms

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Solution Dynamics (NZSE:SDL) Business Description

Traded in Other Exchanges
N/A
Address
18 Canaveral Drive, PO Box 301248, Albany, Auckland, NZL, 0752
Solution Dynamics Ltd is a company engaged in providing customer communications solutions. Its products and services are represented by revenue streams: Digital Printing & Document Handling Services; and Software and Technology, Outsourced services. Services include digital print and mail house processing for mail items like invoices, statements, and promotional material. Software and Technology develop and markets its software products related to multi-channel marketing communications including digital asset management, communication templates, campaign management, document archiving, document composition, and desktop mail solutions among others. Its outsourced services elements are the post, freight, paper, and envelopes.

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