Kjell Group AB (publ)'s (STO:KJELL) P/S Is Still On The Mark Following 31% Share Price Bounce

Simply Wall St · 07/03 04:04

Despite an already strong run, Kjell Group AB (publ) (STO:KJELL) shares have been powering on, with a gain of 31% in the last thirty days. Unfortunately, the gains of the last month did little to right the losses of the last year with the stock still down 38% over that time.

In spite of the firm bounce in price, it's still not a stretch to say that Kjell Group's price-to-sales (or "P/S") ratio of 0.3x right now seems quite "middle-of-the-road" compared to the Specialty Retail industry in Sweden, where the median P/S ratio is around 0.6x. Although, it's not wise to simply ignore the P/S without explanation as investors may be disregarding a distinct opportunity or a costly mistake.

See our latest analysis for Kjell Group

ps-multiple-vs-industry
OM:KJELL Price to Sales Ratio vs Industry July 3rd 2025

What Does Kjell Group's Recent Performance Look Like?

Kjell Group could be doing better as its revenue has been going backwards lately while most other companies have been seeing positive revenue growth. Perhaps the market is expecting its poor revenue performance to improve, keeping the P/S from dropping. You'd really hope so, otherwise you're paying a relatively elevated price for a company with this sort of growth profile.

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

Is There Some Revenue Growth Forecasted For Kjell Group?

In order to justify its P/S ratio, Kjell Group would need to produce growth that's similar to the industry.

Taking a look back first, we see that there was hardly any revenue growth to speak of for the company over the past year. Likewise, not much has changed from three years ago as revenue have been stuck during that whole time. Therefore, it's fair to say that revenue growth has definitely eluded the company recently.

Looking ahead now, revenue is anticipated to climb by 2.7% during the coming year according to the three analysts following the company. With the industry predicted to deliver 1.8% growth , the company is positioned for a comparable revenue result.

With this information, we can see why Kjell Group is trading at a fairly similar P/S to the industry. It seems most investors are expecting to see average future growth and are only willing to pay a moderate amount for the stock.

What Does Kjell Group's P/S Mean For Investors?

Its shares have lifted substantially and now Kjell Group's P/S is back within range of the industry median. 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.

Our look at Kjell Group's revenue growth estimates show that its P/S is about what we expect, as both metrics follow closely with the industry averages. At this stage investors feel the potential for an improvement or deterioration in revenue isn't great enough to push P/S in a higher or lower direction. All things considered, if the P/S and revenue estimates contain no major shocks, then it's hard to see the share price moving strongly in either direction in the near future.

You need to take note of risks, for example - Kjell Group has 3 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

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