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Investors Don't See Light At End Of NorthStar Gaming Holdings Inc.'s (CVE:BET) Tunnel And Push Stock Down 33%

Simply Wall St · 2d ago

Unfortunately for some shareholders, the NorthStar Gaming Holdings Inc. (CVE:BET) share price has dived 33% in the last thirty days, prolonging recent pain. The drop over the last 30 days has capped off a tough year for shareholders, with the share price down 33% in that time.

Since its price has dipped substantially, given close to half the companies in Canada's Hospitality industry have price-to-sales ratios (or "P/S") above 2.5x, you may consider NorthStar Gaming Holdings as a highly attractive investment with its 0.1x 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 limited.

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View our latest analysis for NorthStar Gaming Holdings

ps-multiple-vs-industry
TSXV:BET Price to Sales Ratio vs Industry December 14th 2025

How Has NorthStar Gaming Holdings Performed Recently?

NorthStar Gaming Holdings has been doing a good job lately as it's been growing revenue at a solid pace. It might be that many expect the respectable revenue performance to degrade substantially, which has repressed the P/S. If that doesn't eventuate, then existing shareholders have reason to be optimistic about the future direction of the share price.

Want the full picture on earnings, revenue and cash flow for the company? Then our free report on NorthStar Gaming Holdings will help you shine a light on its historical performance.

Is There Any Revenue Growth Forecasted For NorthStar Gaming Holdings?

NorthStar Gaming Holdings' P/S ratio would be typical for a company that's expected to deliver very poor growth or even falling revenue, and importantly, perform much worse than the industry.

If we review the last year of revenue growth, the company posted a terrific increase of 27%. The latest three year period has also seen an incredible overall rise in revenue, aided by its incredible short-term performance. So we can start by confirming that the company has done a tremendous job of growing revenue over that time.

Comparing the recent medium-term revenue trends against the industry's one-year growth forecast of 211% shows it's noticeably less attractive.

In light of this, it's understandable that NorthStar Gaming Holdings' P/S sits below the majority of other companies. Apparently many shareholders weren't comfortable holding on to something they believe will continue to trail the wider industry.

The Final Word

Shares in NorthStar Gaming Holdings have plummeted and its P/S has followed suit. 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 suspected, our examination of NorthStar Gaming Holdings revealed its three-year revenue trends are contributing to its low P/S, given they look worse than current industry expectations. Right now shareholders are accepting the low P/S as they concede future revenue probably won't provide any pleasant surprises. If recent medium-term revenue trends continue, it's hard to see the share price experience a reversal of fortunes anytime soon.

You should always think about risks. Case in point, we've spotted 5 warning signs for NorthStar Gaming Holdings you should be aware of.

If companies with solid past earnings growth is up your alley, you may wish to see this free collection of other companies with strong earnings growth and low P/E ratios.