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    Unisync Corp. (TSE:UNI) Shares Fly 28% But Investors Aren't Buying For Growth

    Simply Wall St·12/19/2025 10:38:54
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    Unisync Corp. (TSE:UNI) shares have had a really impressive month, gaining 28% after a shaky period beforehand. While recent buyers may be laughing, long-term holders might not be as pleased since the recent gain only brings the stock back to where it started a year ago.

    In spite of the firm bounce in price, when close to half the companies operating in Canada's Luxury industry have price-to-sales ratios (or "P/S") above 1.4x, you may still consider Unisync as an enticing stock to check out with its 0.3x P/S ratio. However, the P/S might be low for a reason and it requires further investigation to determine if it's justified.

    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 Unisync

    ps-multiple-vs-industry
    TSX:UNI Price to Sales Ratio vs Industry December 19th 2025

    How Unisync Has Been Performing

    For instance, Unisync's receding revenue in recent times would have to be some food for thought. One possibility is that the P/S is low because investors think the company won't do enough to avoid underperforming the broader industry in the near future. If you like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's out of favour.

    We don't have analyst forecasts, but you can see how recent trends are setting up the company for the future by checking out our free report on Unisync's earnings, revenue and cash flow.

    What Are Revenue Growth Metrics Telling Us About The Low P/S?

    There's an inherent assumption that a company should underperform the industry for P/S ratios like Unisync's to be considered reasonable.

    Retrospectively, the last year delivered a frustrating 6.0% decrease to the company's top line. As a result, revenue from three years ago have also fallen 12% overall. Accordingly, shareholders would have felt downbeat about the medium-term rates of revenue growth.

    In contrast to the company, the rest of the industry is expected to grow by 7.9% over the next year, which really puts the company's recent medium-term revenue decline into perspective.

    With this information, we are not surprised that Unisync is trading at a P/S lower than the industry. Nonetheless, there's no guarantee the P/S has reached a floor yet with revenue going in reverse. Even just maintaining these prices could be difficult to achieve as recent revenue trends are already weighing down the shares.

    The Bottom Line On Unisync's P/S

    Despite Unisync's share price climbing recently, its P/S still lags most other companies. Using the price-to-sales ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects.

    It's no surprise that Unisync maintains its low P/S off the back of its sliding revenue over the medium-term. Right now shareholders are accepting the low P/S as they concede future revenue probably won't provide any pleasant surprises either. Unless the recent medium-term conditions improve, they will continue to form a barrier for the share price around these levels.

    You should always think about risks. Case in point, we've spotted 2 warning signs for Unisync you should be aware of, and 1 of them is potentially serious.

    Of course, profitable companies with a history of great earnings growth are generally safer bets. So you may wish to see this free collection of other companies that have reasonable P/E ratios and have grown earnings strongly.