Safello shares skyrocket by 41% despite price and activity still lagging behind the industry.
Safello Group AB (publ) (STO:SFL) shares have continued their recent momentum with a 41% increase in the last month alone. This past month ends a massive 128% increase over the past year.
But the price rise does not tell the whole story, argues Simply Wall St in a recent analysis.
Even after such a large price increase, Safello Group can still send very positive signals at the moment with its price-to-sales (or “P/S”) ratio of 0.2x, as almost half of all companies in the capital markets industry in Sweden have P/S ratios greater than 2.9. However, it is not wise to just take P/S at face value because there may be an explanation as to why it is so limited.
Looking ahead, revenue is expected to grow by 5.0% annually over the next three years according to the only analyst who follows the company. That looks set to be materially lower than the 15% annual growth forecast for the broader industry.
With this in mind, it is clear why Safello Group's P/S numbers lag behind those of its industry competitors. Clearly, many shareholders were not comfortable holding on to their shares while the company is potentially aiming for a less successful future.
Safello shares skyrocket by 41% despite price and activity still lagging behind the industry.
Safello Group AB (publ) (STO:SFL) shares have continued their recent momentum with a 41% increase in the last month alone. This past month ends a massive 128% increase over the past year.
But the price rise does not tell the whole story, argues Simply Wall St in a recent analysis.
Even after such a large price increase, Safello Group can still send very positive signals at the moment with its price-to-sales (or “P/S”) ratio of 0.2x, as almost half of all companies in the capital markets industry in Sweden have P/S ratios greater than 2.9. However, it is not wise to just take P/S at face value because there may be an explanation as to why it is so limited.
Looking ahead, revenue is expected to grow by 5.0% annually over the next three years according to the only analyst who follows the company. That looks set to be materially lower than the 15% annual growth forecast for the broader industry.
With this in mind, it is clear why Safello Group's P/S numbers lag behind those of its industry competitors. Clearly, many shareholders were not comfortable holding on to their shares while the company is potentially aiming for a less successful future.
