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    Accel Solutions Group Ltd (TLV:ACCL) Shares Fly 25% But Investors Aren't Buying For Growth

    Simply Wall St·01/02/2026 04:02:07
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    Accel Solutions Group Ltd (TLV:ACCL) shares have had a really impressive month, gaining 25% after a shaky period beforehand. The last 30 days bring the annual gain to a very sharp 37%.

    Although its price has surged higher, Accel Solutions Group may still be sending buy signals at present with its price-to-sales (or "P/S") ratio of 0.9x, considering almost half of all companies in the Electronic industry in Israel have P/S ratios greater than 2x and even P/S higher than 11x aren't out of the ordinary. 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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    View our latest analysis for Accel Solutions Group

    ps-multiple-vs-industry
    TASE:ACCL Price to Sales Ratio vs Industry January 2nd 2026

    What Does Accel Solutions Group's P/S Mean For Shareholders?

    Accel Solutions Group has been doing a good job lately as it's been growing revenue at a solid pace. One possibility is that the P/S is low because investors think this respectable revenue growth might actually underperform the broader industry in the near future. Those who are bullish on Accel Solutions Group will be hoping that this isn't the case, so that they can pick up the stock at a lower valuation.

    Although there are no analyst estimates available for Accel Solutions Group, take a look at this free data-rich visualisation to see how the company stacks up on 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 Accel Solutions Group's to be considered reasonable.

    Taking a look back first, we see that the company grew revenue by an impressive 29% last year. Pleasingly, revenue has also lifted 153% in aggregate from three years ago, thanks to the last 12 months of growth. So we can start by confirming that the company has done a great job of growing revenue over that time.

    Comparing that to the industry, which is predicted to deliver 54% growth in the next 12 months, the company's momentum is weaker, based on recent medium-term annualised revenue results.

    With this information, we can see why Accel Solutions Group is trading at a P/S lower than the industry. It seems most investors are expecting to see the recent limited growth rates continue into the future and are only willing to pay a reduced amount for the stock.

    The Final Word

    The latest share price surge wasn't enough to lift Accel Solutions Group's P/S close to the industry median. 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.

    Our examination of Accel Solutions Group confirms that the company's revenue trends over the past three-year years are a key factor in its low price-to-sales ratio, as we suspected, given they fall short of current industry expectations. At this stage investors feel the potential for an improvement in revenue isn't great enough to justify a higher P/S ratio. Unless the recent medium-term conditions improve, they will continue to form a barrier for the share price around these levels.

    Having said that, be aware Accel Solutions Group is showing 4 warning signs in our investment analysis, you should know about.

    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).