Benign Growth For Bioalpha Holdings Berhad (KLSE:BIOHLDG) Underpins Stock's 33% Plummet

Simply Wall St · 6d ago

Unfortunately for some shareholders, the Bioalpha Holdings Berhad (KLSE:BIOHLDG) share price has dived 33% in the last thirty days, prolonging recent pain. For any long-term shareholders, the last month ends a year to forget by locking in a 78% share price decline.

After such a large drop in price, it would be understandable if you think Bioalpha Holdings Berhad is a stock with good investment prospects with a price-to-sales ratios (or "P/S") of 0.5x, considering almost half the companies in Malaysia's Personal Products industry have P/S ratios above 1.5x. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's limited.

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See our latest analysis for Bioalpha Holdings Berhad

ps-multiple-vs-industry
KLSE:BIOHLDG Price to Sales Ratio vs Industry June 10th 2025

What Does Bioalpha Holdings Berhad's Recent Performance Look Like?

Revenue has risen firmly for Bioalpha Holdings Berhad recently, which is pleasing to see. It might be that many expect the respectable revenue performance to degrade substantially, which has repressed the P/S. If that doesn't eventuate, then existing shareholders have reason to be optimistic about the future direction of the share price.

Want the full picture on earnings, revenue and cash flow for the company? Then our free report on Bioalpha Holdings Berhad will help you shine a light on its historical performance.

Do Revenue Forecasts Match The Low P/S Ratio?

The only time you'd be truly comfortable seeing a P/S as low as Bioalpha Holdings Berhad's is when the company's growth is on track to lag the industry.

If we review the last year of revenue growth, the company posted a terrific increase of 28%. Still, revenue has fallen 30% in total from three years ago, which is quite disappointing. Therefore, it's fair to say the revenue growth recently has been undesirable for the company.

Weighing that medium-term revenue trajectory against the broader industry's one-year forecast for expansion of 10% shows it's an unpleasant look.

With this in mind, we understand why Bioalpha Holdings Berhad's P/S is lower than most of its industry peers. However, we think shrinking revenues are unlikely to lead to a stable P/S over the longer term, which could set up shareholders for future disappointment. There's potential for the P/S to fall to even lower levels if the company doesn't improve its top-line growth.

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What We Can Learn From Bioalpha Holdings Berhad's P/S?

The southerly movements of Bioalpha Holdings Berhad's shares means its P/S is now sitting at a pretty low level. 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.

As we suspected, our examination of Bioalpha Holdings Berhad revealed its shrinking revenue over the medium-term is contributing to its low P/S, given the industry is set to grow. Right now shareholders are accepting the low P/S as they concede future revenue probably won't provide any pleasant surprises either. Unless the recent medium-term conditions improve, they will continue to form a barrier for the share price around these levels.

Don't forget that there may be other risks. For instance, we've identified 3 warning signs for Bioalpha Holdings Berhad that you should be aware of.

If you're unsure about the strength of Bioalpha Holdings Berhad's business, why not explore our interactive list of stocks with solid business fundamentals for some other companies you may have missed.