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    It's Down 44% But Etropal AD (BUL:ETR) Could Be Riskier Than It Looks

    Simply Wall St·01/02/2026 04:37:44
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    Etropal AD (BUL:ETR) shares have had a horrible month, losing 44% after a relatively good period beforehand. To make matters worse, the recent drop has wiped out a year's worth of gains with the share price now back where it started a year ago.

    After such a large drop in price, Etropal AD's price-to-sales (or "P/S") ratio of 0.6x might make it look like a strong buy right now compared to the wider Medical Equipment industry in Bulgaria, where around half of the companies have P/S ratios above 3.2x and even P/S above 7x are quite common. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's so limited.

    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.

    See our latest analysis for Etropal AD

    ps-multiple-vs-industry
    BUL:ETR Price to Sales Ratio vs Industry January 2nd 2026

    What Does Etropal AD's Recent Performance Look Like?

    The revenue growth achieved at Etropal AD over the last year would be more than acceptable for most companies. It might be that many expect the respectable revenue performance to degrade substantially, which has repressed the P/S. Those who are bullish on Etropal AD will be hoping that this isn't the case, so that they can pick up the stock at a lower valuation.

    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 Etropal AD's earnings, revenue and cash flow.

    How Is Etropal AD's Revenue Growth Trending?

    Etropal AD's P/S ratio would be typical for a company that's expected to deliver very poor growth or even falling revenue, and importantly, perform much worse than the industry.

    Retrospectively, the last year delivered an exceptional 24% gain to the company's top line. The latest three year period has also seen an excellent 90% overall rise in revenue, aided by its short-term performance. Therefore, it's fair to say the revenue growth recently has been superb for the company.

    This is in contrast to the rest of the industry, which is expected to grow by 6.4% over the next year, materially lower than the company's recent medium-term annualised growth rates.

    With this in mind, we find it intriguing that Etropal AD's P/S isn't as high compared to that of its industry peers. It looks like most investors are not convinced the company can maintain its recent growth rates.

    The Bottom Line On Etropal AD's P/S

    Shares in Etropal AD have plummeted and its P/S has followed suit. Generally, our preference is to limit the use of the price-to-sales ratio to establishing what the market thinks about the overall health of a company.

    We're very surprised to see Etropal AD currently trading on a much lower than expected P/S since its recent three-year growth is higher than the wider industry forecast. Potential investors that are sceptical over continued revenue performance may be preventing the P/S ratio from matching previous strong performance. It appears many are indeed anticipating revenue instability, because the persistence of these recent medium-term conditions would normally provide a boost to the share price.

    And what about other risks? Every company has them, and we've spotted 2 warning signs for Etropal AD (of which 1 makes us a bit uncomfortable!) you should know about.

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