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    There's Reason For Concern Over ONEUL E&M co.,Ltd.'s (KOSDAQ:192410) Massive 28% Price Jump

    Simply Wall St·01/18/2026 00:20:09
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    ONEUL E&M co.,Ltd. (KOSDAQ:192410) shareholders are no doubt pleased to see that the share price has bounced 28% in the last month, although it is still struggling to make up recently lost ground. But the last month did very little to improve the 51% share price decline over the last year.

    After such a large jump in price, when almost half of the companies in Korea's Communications industry have price-to-sales ratios (or "P/S") below 1x, you may consider ONEUL E&MLtd as a stock probably not worth researching with its 2.7x P/S ratio. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's as high as it is.

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    Check out our latest analysis for ONEUL E&MLtd

    ps-multiple-vs-industry
    KOSDAQ:A192410 Price to Sales Ratio vs Industry January 18th 2026

    What Does ONEUL E&MLtd's P/S Mean For Shareholders?

    The recent revenue growth at ONEUL E&MLtd would have to be considered satisfactory if not spectacular. One possibility is that the P/S ratio is high because investors think this good revenue growth will be enough to outperform the broader industry in the near future. However, if this isn't the case, investors might get caught out paying too much for the stock.

    Although there are no analyst estimates available for ONEUL E&MLtd, take a look at this free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.

    Is There Enough Revenue Growth Forecasted For ONEUL E&MLtd?

    In order to justify its P/S ratio, ONEUL E&MLtd would need to produce impressive growth in excess of the industry.

    Taking a look back first, we see that the company managed to grow revenues by a handy 4.1% last year. However, this wasn't enough as the latest three year period has seen an unpleasant 31% overall drop in revenue. Therefore, it's fair to say the revenue growth recently has been undesirable for the company.

    Weighing that medium-term revenue trajectory against the broader industry's one-year forecast for expansion of 52% shows it's an unpleasant look.

    With this in mind, we find it worrying that ONEUL E&MLtd's P/S exceeds that of its industry peers. Apparently many investors in the company are way more bullish than recent times would indicate and aren't willing to let go of their stock at any price. There's a very good chance existing shareholders are setting themselves up for future disappointment if the P/S falls to levels more in line with the recent negative growth rates.

    What We Can Learn From ONEUL E&MLtd's P/S?

    ONEUL E&MLtd's P/S is on the rise since its shares have risen strongly. 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've established that ONEUL E&MLtd currently trades on a much higher than expected P/S since its recent revenues have been in decline over the medium-term. Right now we aren't comfortable with the high P/S as this revenue performance is highly unlikely to support such positive sentiment for long. If recent medium-term revenue trends continue, it will place shareholders' investments at significant risk and potential investors in danger of paying an excessive premium.

    It is also worth noting that we have found 6 warning signs for ONEUL E&MLtd (5 don't sit too well with us!) that you need to take into consideration.

    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.