Endomines Finland Oyj's (HEL:PAMPALO) 37% Jump Shows Its Popularity With Investors

Simply Wall St · 06/10 03:02

Despite an already strong run, Endomines Finland Oyj (HEL:PAMPALO) shares have been powering on, with a gain of 37% in the last thirty days. The annual gain comes to 219% following the latest surge, making investors sit up and take notice.

After such a large jump in price, you could be forgiven for thinking Endomines Finland Oyj is a stock to steer clear of with a price-to-sales ratios (or "P/S") of 8.5x, considering almost half the companies in Finland's Metals and Mining industry have P/S ratios below 0.7x. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's so lofty.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

View our latest analysis for Endomines Finland Oyj

ps-multiple-vs-industry
HLSE:PAMPALO Price to Sales Ratio vs Industry June 10th 2025

What Does Endomines Finland Oyj's P/S Mean For Shareholders?

Recent times have been advantageous for Endomines Finland Oyj as its revenues have been rising faster than most other companies. The P/S is probably high because investors think this strong revenue performance will continue. However, if this isn't the case, investors might get caught out paying too much for the stock.

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

Is There Enough Revenue Growth Forecasted For Endomines Finland Oyj?

Endomines Finland Oyj's P/S ratio would be typical for a company that's expected to deliver very strong growth, and importantly, perform much better than the industry.

Retrospectively, the last year delivered an exceptional 46% gain to the company's top line. Spectacularly, three year revenue growth has ballooned by several orders of magnitude, thanks in part to the last 12 months of revenue growth. Accordingly, shareholders would have been over the moon with those medium-term rates of revenue growth.

Looking ahead now, revenue is anticipated to climb by 31% per annum during the coming three years according to the dual analysts following the company. With the industry only predicted to deliver 18% per annum, the company is positioned for a stronger revenue result.

With this information, we can see why Endomines Finland Oyj is trading at such a high P/S compared to the industry. It seems most investors are expecting this strong future growth and are willing to pay more for the stock.

The Key Takeaway

Shares in Endomines Finland Oyj have seen a strong upwards swing lately, which has really helped boost its P/S figure. 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.

We've established that Endomines Finland Oyj maintains its high P/S on the strength of its forecasted revenue growth being higher than the the rest of the Metals and Mining industry, as expected. At this stage investors feel the potential for a deterioration in revenues is quite remote, justifying the elevated P/S ratio. Unless these conditions change, they will continue to provide strong support to the share price.

Plus, you should also learn about this 1 warning sign we've spotted with Endomines Finland Oyj.

If strong companies turning a profit tickle your fancy, then you'll want to check out this free list of interesting companies that trade on a low P/E (but have proven they can grow earnings).