WEBULL

Blumar S.A. (SNSE:BLUMAR) Stocks Shoot Up 26% But Its P/S Still Looks Reasonable

Simply Wall St · 5d ago

Despite an already strong run, Blumar S.A. (SNSE:BLUMAR) shares have been powering on, with a gain of 26% in the last thirty days. The last 30 days bring the annual gain to a very sharp 70%.

Even after such a large jump in price, you could still be forgiven for feeling indifferent about Blumar's P/S ratio of 0.8x, since the median price-to-sales (or "P/S") ratio for the Food industry in Chile is also close to 0.3x. 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.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

View our latest analysis for Blumar

ps-multiple-vs-industry
SNSE:BLUMAR Price to Sales Ratio vs Industry January 7th 2026

What Does Blumar's Recent Performance Look Like?

Recent times have been quite advantageous for Blumar as its revenue has been rising very briskly. Perhaps the market is expecting future revenue performance to taper off, which has kept the P/S from rising. If that doesn't eventuate, then existing shareholders have reason to be feeling 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 Blumar will help you shine a light on its historical performance.

Is There Some Revenue Growth Forecasted For Blumar?

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

Retrospectively, the last year delivered an exceptional 31% gain to the company's top line. The latest three year period has also seen a 15% overall rise in revenue, aided extensively by its short-term performance. Accordingly, shareholders would have probably been satisfied with the medium-term rates of revenue growth.

Weighing that recent medium-term revenue trajectory against the broader industry's one-year forecast for expansion of 5.2% shows it's about the same on an annualised basis.

In light of this, it's understandable that Blumar's P/S sits in line with the majority of other companies. It seems most investors are expecting to see average growth rates continue into the future and are only willing to pay a moderate amount for the stock.

What Does Blumar's P/S Mean For Investors?

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

As we've seen, Blumar's three-year revenue trends seem to be contributing to its P/S, given they look similar to current industry expectations. Currently, with a past revenue trend that aligns closely wit the industry outlook, shareholders are confident the company's future revenue outlook won't contain any major surprises. If recent medium-term revenue trends continue, it's hard to see the share price moving strongly in either direction in the near future under these circumstances.

Don't forget that there may be other risks. For instance, we've identified 1 warning sign for Blumar that 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.