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    Little Excitement Around Full House Resorts, Inc.'s (NASDAQ:FLL) Revenues As Shares Take 25% Pounding

    Simply Wall St·04/29/2025 12:25:41
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    To the annoyance of some shareholders, Full House Resorts, Inc. (NASDAQ:FLL) shares are down a considerable 25% 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 42% in that time.

    Following the heavy fall in price, Full House Resorts may be sending bullish signals at the moment with its price-to-sales (or "P/S") ratio of 0.4x, since almost half of all companies in the Hospitality industry in the United States have P/S ratios greater than 1.5x and even P/S higher than 4x are not unusual. However, the P/S might be low for a reason and it requires further investigation to determine if it's justified.

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    See our latest analysis for Full House Resorts

    ps-multiple-vs-industry
    NasdaqCM:FLL Price to Sales Ratio vs Industry April 29th 2025

    What Does Full House Resorts' P/S Mean For Shareholders?

    With revenue growth that's superior to most other companies of late, Full House Resorts has been doing relatively well. Perhaps the market is expecting future revenue performance to dive, which has kept the P/S suppressed. If the company manages to stay the course, then investors should be rewarded with a share price that matches its revenue figures.

    If you'd like to see what analysts are forecasting going forward, you should check out our free report on Full House Resorts.

    Is There Any Revenue Growth Forecasted For Full House Resorts?

    In order to justify its P/S ratio, Full House Resorts would need to produce sluggish growth that's trailing the industry.

    Taking a look back first, we see that the company grew revenue by an impressive 21% last year. Pleasingly, revenue has also lifted 62% in aggregate from three years ago, thanks to the last 12 months of growth. So we can start by confirming that the company has done a great job of growing revenue over that time.

    Turning to the outlook, the next three years should generate growth of 9.1% each year as estimated by the four analysts watching the company. With the industry predicted to deliver 13% growth per annum, the company is positioned for a weaker revenue result.

    In light of this, it's understandable that Full House Resorts' P/S sits below the majority of other companies. It seems most investors are expecting to see limited future growth and are only willing to pay a reduced amount for the stock.

    What We Can Learn From Full House Resorts' P/S?

    The southerly movements of Full House Resorts' shares means its P/S is now sitting at a pretty low level. 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.

    As expected, our analysis of Full House Resorts' analyst forecasts confirms that the company's underwhelming revenue outlook is a major contributor to its low P/S. At this stage investors feel the potential for an improvement in revenue isn't great enough to justify a higher P/S ratio. It's hard to see the share price rising strongly in the near future under these circumstances.

    Before you settle on your opinion, we've discovered 1 warning sign for Full House Resorts that you should be aware of.

    If companies with solid past earnings growth is up your alley, you may wish to see this free collection of other companies with strong earnings growth and low P/E ratios.