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    Why Investors Shouldn't Be Surprised By Domiki Kritis S.A.'s (ATH:DOMIK) 25% Share Price Surge

    Simply Wall St·01/02/2026 03:02:13
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    Domiki Kritis S.A. (ATH:DOMIK) shares have had a really impressive month, gaining 25% after a shaky period beforehand. Unfortunately, the gains of the last month did little to right the losses of the last year with the stock still down 17% over that time.

    Since its price has surged higher, given close to half the companies operating in Greece's Construction industry have price-to-sales ratios (or "P/S") below 1.5x, you may consider Domiki Kritis as a stock to potentially avoid with its 2.5x P/S ratio. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the elevated P/S.

    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.

    Check out our latest analysis for Domiki Kritis

    ps-multiple-vs-industry
    ATSE:DOMIK Price to Sales Ratio vs Industry January 2nd 2026

    What Does Domiki Kritis' Recent Performance Look Like?

    For instance, Domiki Kritis' receding revenue in recent times would have to be some food for thought. Perhaps the market believes the company can do enough to outperform the rest of the industry in the near future, which is keeping the P/S ratio high. If not, then existing shareholders may be quite nervous about the viability of the share price.

    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 Domiki Kritis' earnings, revenue and cash flow.

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

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

    Taking a look back first, the company's revenue growth last year wasn't something to get excited about as it posted a disappointing decline of 22%. However, a few very strong years before that means that it was still able to grow revenue by an impressive 35% in total over the last three years. Although it's been a bumpy ride, it's still fair to say the revenue growth recently has been more than adequate for the company.

    When compared to the industry's one-year growth forecast of 5.3%, the most recent medium-term revenue trajectory is noticeably more alluring

    With this in consideration, it's not hard to understand why Domiki Kritis' P/S is high relative to its industry peers. Presumably shareholders aren't keen to offload something they believe will continue to outmanoeuvre the wider industry.

    What We Can Learn From Domiki Kritis' P/S?

    Domiki Kritis shares have taken a big step in a northerly direction, but its P/S is elevated as a result. 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.

    It's no surprise that Domiki Kritis can support its high P/S given the strong revenue growth its experienced over the last three-year is superior to the current industry outlook. In the eyes of shareholders, the probability of a continued growth trajectory is great enough to prevent the P/S from pulling back. If recent medium-term revenue trends continue, it's hard to see the share price falling strongly in the near future under these circumstances.

    Don't forget that there may be other risks. For instance, we've identified 5 warning signs for Domiki Kritis (3 are a bit unpleasant) you should be aware of.

    If strong companies turning a profit tickle your fancy, then you'll want to check out this free list of interesting companies that trade on a low P/E (but have proven they can grow earnings).