Rav-Bariach (08) Industries Ltd.'s (TLV:BRIH) P/S Is Still On The Mark Following 25% Share Price Bounce

Simply Wall St · 07/04 04:23

Despite an already strong run, Rav-Bariach (08) Industries Ltd. (TLV:BRIH) shares have been powering on, with a gain of 25% in the last thirty days. The last 30 days bring the annual gain to a very sharp 86%.

In spite of the firm bounce in price, there still wouldn't be many who think Rav-Bariach (08) Industries' price-to-sales (or "P/S") ratio of 0.6x is worth a mention when the median P/S in Israel's Building industry is similar at about 0.9x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.

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See our latest analysis for Rav-Bariach (08) Industries

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TASE:BRIH Price to Sales Ratio vs Industry July 4th 2025

How Has Rav-Bariach (08) Industries Performed Recently?

The recent revenue growth at Rav-Bariach (08) Industries would have to be considered satisfactory if not spectacular. One possibility is that the P/S is moderate because investors think this good revenue growth might only be parallel to the broader industry in the near future. If you like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's not quite in favour.

Although there are no analyst estimates available for Rav-Bariach (08) Industries, take a look at this free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.

What Are Revenue Growth Metrics Telling Us About The P/S?

In order to justify its P/S ratio, Rav-Bariach (08) Industries would need to produce growth that's similar to the industry.

Retrospectively, the last year delivered a decent 2.6% gain to the company's revenues. The latest three year period has also seen a 19% overall rise in revenue, aided somewhat by its short-term performance. Accordingly, shareholders would have probably been satisfied with the medium-term rates of revenue growth.

It's interesting to note that the rest of the industry is similarly expected to grow by 6.4% over the next year, which is fairly even with the company's recent medium-term annualised growth rates.

With this in consideration, it's clear to see why Rav-Bariach (08) Industries' P/S matches up closely to its industry peers. Apparently shareholders are comfortable to simply hold on assuming the company will continue keeping a low profile.

The Bottom Line On Rav-Bariach (08) Industries' P/S

Rav-Bariach (08) Industries appears to be back in favour with a solid price jump bringing its P/S back in line with other companies in the industry 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.

As we've seen, Rav-Bariach (08) Industries' three-year revenue trends seem to be contributing to its P/S, given they look similar to current industry expectations. Currently, with a past revenue trend that aligns closely wit the industry outlook, shareholders are confident the company's future revenue outlook won't contain any major surprises. Unless the recent medium-term conditions change, they will continue to support the share price at these levels.

And what about other risks? Every company has them, and we've spotted 3 warning signs for Rav-Bariach (08) Industries (of which 2 are significant!) you should know about.

If you're unsure about the strength of Rav-Bariach (08) Industries' business, why not explore our interactive list of stocks with solid business fundamentals for some other companies you may have missed.