WEBULL

Kerlink SA (EPA:ALKLK) Could Be Riskier Than It Looks

Simply Wall St · 6d ago

It's not a stretch to say that Kerlink SA's (EPA:ALKLK) price-to-sales (or "P/S") ratio of 0.6x right now seems quite "middle-of-the-road" for companies in the Communications industry in France, where the median P/S ratio is around 0.7x. 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 Kerlink

ps-multiple-vs-industry
ENXTPA:ALKLK Price to Sales Ratio vs Industry January 7th 2026

How Has Kerlink Performed Recently?

While the industry has experienced revenue growth lately, Kerlink's revenue has gone into reverse gear, which is not great. It might be that many expect the dour revenue performance to strengthen positively, which has kept the P/S from falling. You'd really hope so, otherwise you're paying a relatively elevated price for a company with this sort of growth profile.

Keen to find out how analysts think Kerlink's future stacks up against the industry? In that case, our free report is a great place to start.

How Is Kerlink's Revenue Growth Trending?

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

Taking a look back first, the company's revenue growth last year wasn't something to get excited about as it posted a disappointing decline of 4.9%. This means it has also seen a slide in revenue over the longer-term as revenue is down 43% in total over the last three years. Therefore, it's fair to say the revenue growth recently has been undesirable for the company.

Turning to the outlook, the next year should generate growth of 34% as estimated by the sole analyst watching the company. With the industry only predicted to deliver 5.7%, the company is positioned for a stronger revenue result.

With this in consideration, we find it intriguing that Kerlink's P/S is closely matching its industry peers. It may be that most investors aren't convinced the company can achieve future growth expectations.

The Final Word

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.

We've established that Kerlink currently trades on a lower than expected P/S since its forecasted revenue growth is higher than the wider industry. There could be some risks that the market is pricing in, which is preventing the P/S ratio from matching the positive outlook. At least the risk of a price drop looks to be subdued, but investors seem to think future revenue could see some volatility.

Before you take the next step, you should know about the 2 warning signs for Kerlink (1 is potentially serious!) that we have uncovered.

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).