TOP SHIPS Inc (TOPS) is up 58.95% today. Key valuation metrics show to be holding great value at its current price but still need to be wary as the company is consistently reporting negative earnings.
PEG is one of the most used valuation metrics today as it incorporates the stocks market price along with its earnings growth rate and price to earnings ratio. When dealing with penny stocks such as TOPS it skews the data due to low numbers and the fact that TOP SHIPS has only reported negative earnings per share recently. The lack of forecasted EPS for this stock also limits this metric but the -0.24 PEG ratio for TOPS technically shows it to be at an extremely great value. This is due to negative earnings leading to the P/E ratio to be negative while EPS growth year over year is slightly up. A PEG of positive 0.24 would still show a great value for the stock. Some better metrics for this stock like price to book ratio and price to sales paint a slightly different picture but still show the stock to be a bit over its fair value.
The commonly used price to book ratio shows a very favorable value with TOPS’s current price as the 0.08 P/B ratio is under the fair value ratio of 1. Usually anything above a 3 is considered overvalued and TOP SHIPS is significantly below that. Smaller cap stocks can still be tough using this metric.
TOPS’s price to sales ratio also is great at a 0.04 P/S ratio which is far below the accepted fair value between 1 and 2. Generally anything over 4 is overvalued so paying $0.04 for every $1 of the company’s sales is a great value for this company.
The price to free cash flows ratio of 0.27 P/CF additionally shows the stock being undervalued at the trading price of around $0.24. New fast growing companies like TOPS are going to have higher P/CF ratios as the price is factoring in future growth so this ratio needs to be weighed along with all the other metrics.
All together these valuation metrics paint a pretty good picture for TOPS at its current price due to strong sales, book value, and cash flow. The company is growing but still in deep negative EPS territory so should be cautious. That being said, the P/S, P/B, and P/CF are great for a company this small with plenty of room to grow in this market.
TOP SHIPS Inc (TOPS) stock has fallen -97.51% over the last 12 months, and the average rating from Wall Street analysts is a Strong Buy. InvestorsObserver’s proprietary scoring system, gives TOPS stock a score of 38 out of a possible 100.
That score is chiefly influenced by a long-term technical score of 0. TOPS’s score also includes a short-term technical score of 28. The fundamental score for TOPS is 87. In addition to the average rating from Wall Street analysts, TOPS stock has a mean target price of 0.4. This means analysts expect the stock to add 66.67% over the next 12 months.
What’s Happening with TOPS Stock Today
TOP SHIPS Inc (TOPS) stock has gained 58.95% while the S&P 500 is higher by 2.82% as of 1:10 PM on Friday, Jun 5. TOPS is higher by $0.09 from the previous closing price of $0.15 on volume of 345,982,579 shares. Over the past year the S&P 500 has risen 12.55% while TOPS has fallen -97.51%. TOPS lost -$10.58 per share in the over the last 12 months.
