WEBULL

Little Excitement Around ADDvise Group AB (publ)'s (STO:ADDV A) Revenues As Shares Take 26% Pounding

Simply Wall St · 2d ago

Unfortunately for some shareholders, the ADDvise Group AB (publ) (STO:ADDV A) share price has dived 26% 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 82% share price decline.

In spite of the heavy fall in price, ADDvise Group may still be sending very bullish signals at the moment with its price-to-sales (or "P/S") ratio of 0.7x, since almost half of all companies in the Medical Equipment industry in Sweden have P/S ratios greater than 4.3x and even P/S higher than 8x are not unusual. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's so limited.

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Check out our latest analysis for ADDvise Group

ps-multiple-vs-industry
OM:ADDV A Price to Sales Ratio vs Industry December 7th 2025

What Does ADDvise Group's P/S Mean For Shareholders?

ADDvise Group hasn't been tracking well recently as its declining revenue compares poorly to other companies, which have seen some growth in their revenues on average. It seems that many are expecting the poor revenue performance to persist, which has repressed the P/S ratio. If this is the case, then existing shareholders will probably struggle to get excited about the future direction of the share price.

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

Do Revenue Forecasts Match The Low P/S Ratio?

The only time you'd be truly comfortable seeing a P/S as depressed as ADDvise Group's is when the company's growth is on track to lag the industry decidedly.

Retrospectively, the last year delivered virtually the same number to the company's top line as the year before. Although pleasingly revenue has lifted 106% in aggregate from three years ago, notwithstanding the last 12 months. Therefore, it's fair to say the revenue growth recently has been great for the company, but investors will want to ask why it has slowed to such an extent.

Turning to the outlook, the next three years should generate growth of 3.1% per annum as estimated by the one analyst watching the company. That's shaping up to be materially lower than the 36% each year growth forecast for the broader industry.

With this in consideration, its clear as to why ADDvise Group's P/S is falling short industry peers. Apparently many shareholders weren't comfortable holding on while the company is potentially eyeing a less prosperous future.

What We Can Learn From ADDvise Group's P/S?

Having almost fallen off a cliff, ADDvise Group's share price has pulled its P/S way down as well. While the price-to-sales ratio shouldn't be the defining factor in whether you buy a stock or not, it's quite a capable barometer of revenue expectations.

We've established that ADDvise Group maintains its low P/S on the weakness of its forecast growth being lower than the wider industry, as expected. Shareholders' pessimism on the revenue prospects for the company seems to be the main contributor to the depressed P/S. It's hard to see the share price rising strongly in the near future under these circumstances.

Before you take the next step, you should know about the 6 warning signs for ADDvise Group (2 shouldn't be ignored!) that we have uncovered.

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