Måsøval AS (OB:MAS) Surges 29% Yet Its Low P/S Is No Reason For Excitement

Simply Wall St · 07/01 04:09

Måsøval AS (OB:MAS) shares have had a really impressive month, gaining 29% after a shaky period beforehand. Unfortunately, the gains of the last month did little to right the losses of the last year with the stock still down 22% over that time.

Although its price has surged higher, when close to half the companies operating in Norway's Food industry have price-to-sales ratios (or "P/S") above 2.1x, you may still consider Måsøval as an enticing stock to check out with its 1.2x P/S ratio. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the reduced P/S.

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

See our latest analysis for Måsøval

ps-multiple-vs-industry
OB:MAS Price to Sales Ratio vs Industry July 1st 2025

What Does Måsøval's P/S Mean For Shareholders?

With revenue growth that's superior to most other companies of late, Måsøval has been doing relatively well. One possibility is that the P/S ratio is low because investors think this strong revenue performance might be less impressive moving forward. If not, then existing shareholders have reason to be quite optimistic about the future direction of the share price.

Want the full picture on analyst estimates for the company? Then our free report on Måsøval will help you uncover what's on the horizon.

Is There Any Revenue Growth Forecasted For Måsøval?

There's an inherent assumption that a company should underperform the industry for P/S ratios like Måsøval's to be considered reasonable.

Taking a look back first, we see that the company managed to grow revenues by a handy 3.5% last year. Pleasingly, revenue has also lifted 92% in aggregate from three years ago, partly thanks to the last 12 months of growth. So we can start by confirming that the company has done a great job of growing revenues over that time.

Turning to the outlook, the next year should generate growth of 6.7% as estimated by the four analysts watching the company. Meanwhile, the rest of the industry is forecast to expand by 711%, which is noticeably more attractive.

With this in consideration, its clear as to why Måsøval's P/S is falling short industry peers. It seems most investors are expecting to see limited future growth and are only willing to pay a reduced amount for the stock.

The Final Word

The latest share price surge wasn't enough to lift Måsøval's P/S close to the industry median. Typically, we'd caution against reading too much into price-to-sales ratios when settling on investment decisions, though it can reveal plenty about what other market participants think about the company.

We've established that Måsøval maintains its low P/S on the weakness of its forecast growth being lower than the wider industry, as expected. Right now shareholders are accepting the low P/S as they concede future revenue probably won't provide any pleasant surprises. The company will need a change of fortune to justify the P/S rising higher in the future.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Måsøval that you need to be mindful of.

It's important to make sure you look for a great company, not just the first idea you come across. So if growing profitability aligns with your idea of a great company, take a peek at this free list of interesting companies with strong recent earnings growth (and a low P/E).