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Mama's Creations, Inc. (NASDAQ:MAMA) Looks Just Right With A 30% Price Jump

Simply Wall St · 1d ago

Despite an already strong run, Mama's Creations, Inc. (NASDAQ:MAMA) shares have been powering on, with a gain of 30% in the last thirty days. Looking back a bit further, it's encouraging to see the stock is up 41% in the last year.

Following the firm bounce in price, given around half the companies in the United States' Food industry have price-to-sales ratios (or "P/S") below 0.7x, you may consider Mama's Creations as a stock to avoid entirely with its 3.6x P/S ratio. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's so lofty.

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See our latest analysis for Mama's Creations

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NasdaqCM:MAMA Price to Sales Ratio vs Industry December 12th 2025

What Does Mama's Creations' P/S Mean For Shareholders?

Mama's Creations certainly has been doing a good job lately as it's been growing revenue more than most other companies. The P/S is probably high because investors think this strong revenue performance will continue. However, if this isn't the case, investors might get caught out paying too much for the stock.

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

Do Revenue Forecasts Match The High P/S Ratio?

The only time you'd be truly comfortable seeing a P/S as steep as Mama's Creations' is when the company's growth is on track to outshine the industry decidedly.

Retrospectively, the last year delivered an exceptional 30% gain to the company's top line. The strong recent performance means it was also able to grow revenue by 80% in total over the last three years. Accordingly, shareholders would have definitely welcomed those medium-term rates of revenue growth.

Turning to the outlook, the next year should generate growth of 36% as estimated by the five analysts watching the company. Meanwhile, the rest of the industry is forecast to only expand by 3.9%, which is noticeably less attractive.

In light of this, it's understandable that Mama's Creations' P/S sits above the majority of other companies. It seems most investors are expecting this strong future growth and are willing to pay more for the stock.

What Does Mama's Creations' P/S Mean For Investors?

Shares in Mama's Creations have seen a strong upwards swing lately, which has really helped boost its P/S figure. 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.

Our look into Mama's Creations shows that its P/S ratio remains high on the merit of its strong future revenues. Right now shareholders are comfortable with the P/S as they are quite confident future revenues aren't under threat. Unless these conditions change, they will continue to provide strong support to the share price.

Many other vital risk factors can be found on the company's balance sheet. Our free balance sheet analysis for Mama's Creations with six simple checks will allow you to discover any risks that could be an issue.

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