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    Benign Growth For Monash IVF Group Limited (ASX:MVF) Underpins Stock's 26% Plummet

    Simply Wall St·06/17/2025 20:01:22
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    Unfortunately for some shareholders, the Monash IVF Group Limited (ASX:MVF) share price has dived 26% in the last thirty days, prolonging recent pain. The recent drop completes a disastrous twelve months for shareholders, who are sitting on a 52% loss during that time.

    Since its price has dipped substantially, when close to half the companies operating in Australia's Healthcare industry have price-to-sales ratios (or "P/S") above 1.4x, you may consider Monash IVF Group as an enticing stock to check out with its 0.9x P/S ratio. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's limited.

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    See our latest analysis for Monash IVF Group

    ps-multiple-vs-industry
    ASX:MVF Price to Sales Ratio vs Industry June 17th 2025

    What Does Monash IVF Group's P/S Mean For Shareholders?

    With revenue growth that's inferior to most other companies of late, Monash IVF Group has been relatively sluggish. The P/S ratio is probably low because investors think this lacklustre revenue performance isn't going to get any better. If this is the case, then existing shareholders will probably struggle to get excited about the future direction of the share price.

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

    Do Revenue Forecasts Match The Low P/S Ratio?

    Monash IVF Group's P/S ratio would be typical for a company that's only expected to deliver limited growth, and importantly, perform worse than the industry.

    If we review the last year of revenue growth, the company posted a worthy increase of 14%. Pleasingly, revenue has also lifted 39% in aggregate from three years ago, partly thanks to the last 12 months of growth. So we can start by confirming that the company has done a great job of growing revenues over that time.

    Looking ahead now, revenue is anticipated to climb by 0.2% during the coming year according to the seven analysts following the company. With the industry predicted to deliver 46% growth, the company is positioned for a weaker revenue result.

    With this in consideration, its clear as to why Monash IVF Group's P/S is falling short industry peers. It seems most investors are expecting to see limited future growth and are only willing to pay a reduced amount for the stock.

    What We Can Learn From Monash IVF Group's P/S?

    Monash IVF Group's P/S has taken a dip along with its share price. 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.

    As we suspected, our examination of Monash IVF Group's analyst forecasts revealed that its inferior revenue outlook is contributing to its low P/S. Shareholders' pessimism on the revenue prospects for the company seems to be the main contributor to the depressed P/S. Unless these conditions improve, they will continue to form a barrier for the share price around these levels.

    There are also other vital risk factors to consider and we've discovered 2 warning signs for Monash IVF Group (1 doesn't sit too well with us!) that you should be aware of before investing here.

    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.