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    Market Participants Recognise MicroAd, Inc.'s (TSE:9553) Revenues Pushing Shares 26% Higher

    Simply Wall St·01/02/2026 00:29:57
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    Despite an already strong run, MicroAd, Inc. (TSE:9553) shares have been powering on, with a gain of 26% in the last thirty days. The annual gain comes to 199% following the latest surge, making investors sit up and take notice.

    Even after such a large jump in price, there still wouldn't be many who think MicroAd's price-to-sales (or "P/S") ratio of 1.2x is worth a mention when the median P/S in Japan's Media industry is similar at about 0.9x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.

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    Check out our latest analysis for MicroAd

    ps-multiple-vs-industry
    TSE:9553 Price to Sales Ratio vs Industry January 2nd 2026

    How MicroAd Has Been Performing

    Revenue has risen firmly for MicroAd recently, which is pleasing to see. Perhaps the market is expecting future revenue performance to only keep up with the broader industry, which has keeping the P/S in line with expectations. 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 not quite in 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 MicroAd's earnings, revenue and cash flow.

    Do Revenue Forecasts Match The P/S Ratio?

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

    Retrospectively, the last year delivered a decent 14% gain to the company's revenues. Revenue has also lifted 28% in aggregate from three years ago, partly thanks to the last 12 months of growth. Therefore, it's fair to say the revenue growth recently has been respectable for the company.

    It's interesting to note that the rest of the industry is similarly expected to grow by 6.7% over the next year, which is fairly even with the company's recent medium-term annualised growth rates.

    In light of this, it's understandable that MicroAd's P/S sits in line with the majority of other companies. Apparently shareholders are comfortable to simply hold on assuming the company will continue keeping a low profile.

    The Key Takeaway

    MicroAd appears to be back in favour with a solid price jump bringing its P/S back in line with other companies in the industry 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.

    As we've seen, MicroAd'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.

    It is also worth noting that we have found 4 warning signs for MicroAd (2 don't sit too well with us!) that you need to take into consideration.

    If these risks are making you reconsider your opinion on MicroAd, explore our interactive list of high quality stocks to get an idea of what else is out there.