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Subdued Growth No Barrier To Opus Genetics, Inc. (NASDAQ:IRD) With Shares Advancing 27%

Simply Wall St · 3d ago

Despite an already strong run, Opus Genetics, Inc. (NASDAQ:IRD) shares have been powering on, with a gain of 27% in the last thirty days. The last month tops off a massive increase of 108% in the last year.

Even after such a large jump in price, you could still be forgiven for feeling indifferent about Opus Genetics' P/S ratio of 11.8x, since the median price-to-sales (or "P/S") ratio for the Biotechs industry in the United States is about the same. 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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Check out our latest analysis for Opus Genetics

ps-multiple-vs-industry
NasdaqCM:IRD Price to Sales Ratio vs Industry December 11th 2025

How Has Opus Genetics Performed Recently?

Opus Genetics could be doing better as it's been growing revenue less than most other companies lately. One possibility is that the P/S ratio is moderate because investors think this lacklustre revenue performance will turn around. If not, then existing shareholders may be a little nervous about the viability of the share price.

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

How Is Opus Genetics' Revenue Growth Trending?

Opus Genetics' P/S ratio would be typical for a company that's only expected to deliver moderate growth, and importantly, perform in line with the industry.

Retrospectively, the last year delivered an exceptional 75% gain to the company's top line. However, the latest three year period hasn't been as great in aggregate as it didn't manage to provide any growth at all. So it appears to us that the company has had a mixed result in terms of growing revenue over that time.

Turning to the outlook, the next three years should generate growth of 21% per annum as estimated by the ten analysts watching the company. Meanwhile, the rest of the industry is forecast to expand by 133% per year, which is noticeably more attractive.

In light of this, it's curious that Opus Genetics' P/S sits in line with the majority of other companies. It seems most investors are ignoring the fairly limited growth expectations and are willing to pay up for exposure to the stock. Maintaining these prices will be difficult to achieve as this level of revenue growth is likely to weigh down the shares eventually.

The Final Word

Opus Genetics appears to be back in favour with a solid price jump bringing its P/S back in line with other companies in the industry It's argued the price-to-sales ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator.

Our look at the analysts forecasts of Opus Genetics' revenue prospects has shown that its inferior revenue outlook isn't negatively impacting its P/S as much as we would have predicted. At present, we aren't confident in the P/S as the predicted future revenues aren't likely to support a more positive sentiment for long. This places shareholders' investments at risk and potential investors in danger of paying an unnecessary premium.

Before you settle on your opinion, we've discovered 2 warning signs for Opus Genetics (1 is a bit unpleasant!) that you should be aware of.

Of course, profitable companies with a history of great earnings growth are generally safer bets. So you may wish to see this free collection of other companies that have reasonable P/E ratios and have grown earnings strongly.