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What MOVE Logistics Group Limited's (NZSE:MOV) 45% Share Price Gain Is Not Telling You

Simply Wall St · 5d ago

Despite an already strong run, MOVE Logistics Group Limited (NZSE:MOV) shares have been powering on, with a gain of 45% in the last thirty days. The last 30 days bring the annual gain to a very sharp 70%.

Although its price has surged higher, there still wouldn't be many who think MOVE Logistics Group's price-to-sales (or "P/S") ratio of 0.2x is worth a mention when the median P/S in New Zealand's Logistics industry is similar at about 0.6x. Although, it's not wise to simply ignore the P/S without explanation as investors may be disregarding a distinct opportunity or a costly mistake.

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Check out our latest analysis for MOVE Logistics Group

ps-multiple-vs-industry
NZSE:MOV Price to Sales Ratio vs Industry January 6th 2026

What Does MOVE Logistics Group's Recent Performance Look Like?

For instance, MOVE Logistics Group's receding revenue in recent times would have to be some food for thought. It might be that many expect the company to put the disappointing revenue performance behind them over the coming period, which has kept the P/S from falling. If not, then existing shareholders may be a little nervous about the viability of the share price.

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

Do Revenue Forecasts Match The P/S Ratio?

In order to justify its P/S ratio, MOVE Logistics Group would need to produce growth that's similar to the industry.

Retrospectively, the last year delivered a frustrating 3.5% decrease to the company's top line. As a result, revenue from three years ago have also fallen 21% overall. So unfortunately, we have to acknowledge that the company has not done a great job of growing revenue over that time.

Weighing that medium-term revenue trajectory against the broader industry's one-year forecast for expansion of 7.1% shows it's an unpleasant look.

With this in mind, we find it worrying that MOVE Logistics Group's P/S exceeds that of its industry peers. It seems most investors are ignoring the recent poor growth rate and are hoping for a turnaround in the company's business prospects. Only the boldest would assume these prices are sustainable as a continuation of recent revenue trends is likely to weigh on the share price eventually.

The Final Word

MOVE Logistics Group's stock has a lot of momentum behind it lately, which has brought its P/S level with the rest of 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.

We find it unexpected that MOVE Logistics Group trades at a P/S ratio that is comparable to the rest of the industry, despite experiencing declining revenues during the medium-term, while the industry as a whole is expected to grow. When we see revenue heading backwards in the context of growing industry forecasts, it'd make sense to expect a possible share price decline on the horizon, sending the moderate P/S lower. Unless the recent medium-term conditions improve markedly, investors will have a hard time accepting the share price as fair value.

Don't forget that there may be other risks. For instance, we've identified 3 warning signs for MOVE Logistics Group (2 shouldn't be ignored) you should be aware of.

If strong companies turning a profit tickle your fancy, then you'll want to check out this free list of interesting companies that trade on a low P/E (but have proven they can grow earnings).