There are many figures to use to determine the earnings of companies. One such metric is the Price to Sales ratio, which is also known as the P/S ratio. There are two ways to calculate it, which both come to about the same conclusion. If the P/S is low, then that is generally thought to indicate a better value for the stock. A price to sales ratio under one is what some investors look for regularly. Three stocks that presently have low P/S ratios, which makes them attractive, are Hornbeck Offshore Services, Inc. (NYSE:HOS), LG Display Co Ltd. (ADR) (NYSE:LPL), and Cumulus Media Inc (NASDAQ:CMLS).
Hornbeck Offshore Services, Inc. (NYSE:HOS) last closed at $18.45 a share. Its present price to sales ratio is at 1.10, which is well under the industry average at 9.63. Looking back over five years, the sales ofr the company has risen 10.50% a year, on average, with the company’s net income going up by about 5.10% for its rate.
LG Display Co Ltd. (ADR) (NYSE:LPL) is the next stock with a favorable P/S ratio for investors. It closed at $10.04 per share, with its P/S ratio being at 0.29%. That percentage is significantly under the industry average; this average is at 12.49. The full-year sales growth for the company has stayed at about 5.70% a year and the EPS (earnings per share) for the company has declined by an average -5.00% rate.
As for Cumulus Media Inc (NASDAQ:CMLS), this stock has declined in price over the past fiscal year by -2.44%. The share price as of last close was $1.60. The P/S ratio for the company is 0.31, which is under the industry average. The average for the industry is at 4.55. Regarding earnings, the average per year is steady at 15.10%, as shown over the past five years. The sales for the company is down by about 37.60% for its rate.