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Yunhong Green CTI Ltd. (NASDAQ:YHGJ) Stocks Pounded By 28% But Not Lagging Industry On Growth Or Pricing

Simply Wall St · 5d ago

To the annoyance of some shareholders, Yunhong Green CTI Ltd. (NASDAQ:YHGJ) shares are down a considerable 28% in the last month, which continues a horrid run for the company. Instead of being rewarded, shareholders who have already held through the last twelve months are now sitting on a 34% share price drop.

Although its price has dipped substantially, it's still not a stretch to say that Yunhong Green CTI's price-to-sales (or "P/S") ratio of 0.5x right now seems quite "middle-of-the-road" compared to the Consumer Durables industry in the United States, where the median P/S ratio is around 0.6x. While this might not raise any eyebrows, if the P/S ratio is not justified investors could be missing out on a potential opportunity or ignoring looming disappointment.

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See our latest analysis for Yunhong Green CTI

ps-multiple-vs-industry
NasdaqCM:YHGJ Price to Sales Ratio vs Industry January 1st 2026

How Yunhong Green CTI Has Been Performing

The recent revenue growth at Yunhong Green CTI would have to be considered satisfactory if not spectacular. Perhaps the expectation moving forward is that the revenue growth will track in line with the wider industry for the near term, which has kept the P/S subdued. Those who are bullish on Yunhong Green CTI will be hoping that this isn't the case, so that they can pick up the stock at a lower valuation.

We don't have analyst forecasts, but you can see how recent trends are setting up the company for the future by checking out our free report on Yunhong Green CTI's earnings, revenue and cash flow.

Do Revenue Forecasts Match The P/S Ratio?

The only time you'd be comfortable seeing a P/S like Yunhong Green CTI's is when the company's growth is tracking the industry closely.

Taking a look back first, we see that the company managed to grow revenues by a handy 4.4% last year. Although, the latest three year period in total hasn't been as good as it didn't manage to provide any growth at all. Therefore, it's fair to say that revenue growth has been inconsistent recently for the company.

It's interesting to note that the rest of the industry is similarly expected to grow by 1.8% 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 Yunhong Green CTI's 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.

What Does Yunhong Green CTI's P/S Mean For Investors?

Following Yunhong Green CTI's share price tumble, its P/S is just clinging on to the industry median P/S. We'd say the price-to-sales ratio's power isn't primarily as a valuation instrument but rather to gauge current investor sentiment and future expectations.

It appears to us that Yunhong Green CTI maintains its moderate P/S off the back of its recent three-year growth being in line with the wider industry forecast. Right now shareholders are comfortable with the P/S as they are quite confident future revenue won't throw up any surprises. Unless the recent medium-term conditions change, they will continue to support the share price at these levels.

Having said that, be aware Yunhong Green CTI is showing 2 warning signs in our investment analysis, you should know about.

If these risks are making you reconsider your opinion on Yunhong Green CTI, explore our interactive list of high quality stocks to get an idea of what else is out there.