AirSculpt Technologies, Inc.'s (NASDAQ:AIRS) Shares Climb 69% But Its Business Is Yet to Catch Up

Simply Wall St · 5d ago

The AirSculpt Technologies, Inc. (NASDAQ:AIRS) share price has done very well over the last month, posting an excellent gain of 69%. Taking a wider view, although not as strong as the last month, the full year gain of 22% is also fairly reasonable.

Since its price has surged higher, when almost half of the companies in the United States' Healthcare industry have price-to-sales ratios (or "P/S") below 1x, you may consider AirSculpt Technologies as a stock probably not worth researching with its 1.7x P/S ratio. However, the P/S might be high for a reason and it requires further investigation to determine if it's justified.

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See our latest analysis for AirSculpt Technologies

ps-multiple-vs-industry
NasdaqGM:AIRS Price to Sales Ratio vs Industry June 10th 2025

How AirSculpt Technologies Has Been Performing

While the industry has experienced revenue growth lately, AirSculpt Technologies' revenue has gone into reverse gear, which is not great. One possibility is that the P/S ratio is high because investors think this poor revenue performance will turn the corner. If not, then existing shareholders may be extremely nervous about the viability of the share price.

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

Is There Enough Revenue Growth Forecasted For AirSculpt Technologies?

AirSculpt Technologies' P/S ratio would be typical for a company that's expected to deliver solid growth, and importantly, perform better than the industry.

In reviewing the last year of financials, we were disheartened to see the company's revenues fell to the tune of 13%. That put a dampener on the good run it was having over the longer-term as its three-year revenue growth is still a noteworthy 17% in total. So we can start by confirming that the company has generally done a good job of growing revenue over that time, even though it had some hiccups along the way.

Looking ahead now, revenue is anticipated to climb by 4.3% per annum during the coming three years according to the three analysts following the company. With the industry predicted to deliver 7.4% growth per year, the company is positioned for a weaker revenue result.

With this in consideration, we believe it doesn't make sense that AirSculpt Technologies' P/S is outpacing its industry peers. Apparently many investors in the company are way more bullish than analysts indicate and aren't willing to let go of their stock at any price. Only the boldest would assume these prices are sustainable as this level of revenue growth is likely to weigh heavily on the share price eventually.

What Does AirSculpt Technologies' P/S Mean For Investors?

The large bounce in AirSculpt Technologies' shares has lifted the company's P/S handsomely. Generally, our preference is to limit the use of the price-to-sales ratio to establishing what the market thinks about the overall health of a company.

It comes as a surprise to see AirSculpt Technologies trade at such a high P/S given the revenue forecasts look less than stellar. The weakness in the company's revenue estimate doesn't bode well for the elevated P/S, which could take a fall if the revenue sentiment doesn't improve. This places shareholders' investments at significant risk and potential investors in danger of paying an excessive premium.

You should always think about risks. Case in point, we've spotted 2 warning signs for AirSculpt Technologies you should be aware of.

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