• 繁

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    OKins Electronics Co.,Ltd.'s (KOSDAQ:080580) 26% Share Price Surge Not Quite Adding Up

    Simply Wall St·12/17/2025 21:00:49
    語音播報

    OKins Electronics Co.,Ltd. (KOSDAQ:080580) shareholders would be excited to see that the share price has had a great month, posting a 26% gain and recovering from prior weakness. The annual gain comes to 130% following the latest surge, making investors sit up and take notice.

    After such a large jump in price, you could be forgiven for thinking OKins ElectronicsLtd is a stock not worth researching with a price-to-sales ratios (or "P/S") of 2.4x, considering almost half the companies in Korea's Semiconductor industry have P/S ratios below 1.6x. 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.

    This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

    See our latest analysis for OKins ElectronicsLtd

    ps-multiple-vs-industry
    KOSDAQ:A080580 Price to Sales Ratio vs Industry December 17th 2025

    What Does OKins ElectronicsLtd's Recent Performance Look Like?

    Revenue has risen firmly for OKins ElectronicsLtd recently, which is pleasing to see. It might be that many expect the respectable revenue performance to beat most other companies over the coming period, which has increased investors’ willingness to pay up for the stock. However, if this isn't the case, investors might get caught out paying too much for the stock.

    Want the full picture on earnings, revenue and cash flow for the company? Then our free report on OKins ElectronicsLtd will help you shine a light on its historical performance.

    How Is OKins ElectronicsLtd's Revenue Growth Trending?

    The only time you'd be truly comfortable seeing a P/S as high as OKins ElectronicsLtd's is when the company's growth is on track to outshine the industry.

    Retrospectively, the last year delivered an exceptional 29% gain to the company's top line. The strong recent performance means it was also able to grow revenue by 31% in total over the last three years. Therefore, it's fair to say the revenue growth recently has been superb for the company.

    Comparing the recent medium-term revenue trends against the industry's one-year growth forecast of 49% shows it's noticeably less attractive.

    With this information, we find it concerning that OKins ElectronicsLtd is trading at a P/S higher than the industry. 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 good chance existing shareholders are setting themselves up for future disappointment if the P/S falls to levels more in line with recent growth rates.

    The Final Word

    The large bounce in OKins ElectronicsLtd's shares has lifted the company's P/S handsomely. We'd say the price-to-sales ratio's power isn't primarily as a valuation instrument but rather to gauge current investor sentiment and future expectations.

    Our examination of OKins ElectronicsLtd revealed its poor three-year revenue trends aren't detracting from the P/S as much as we though, given they look worse than current industry expectations. When we see slower than industry revenue growth but an elevated P/S, there's considerable risk of the share price declining, sending the P/S lower. 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.

    And what about other risks? Every company has them, and we've spotted 2 warning signs for OKins ElectronicsLtd you should know about.

    If companies with solid past earnings growth is up your alley, you may wish to see this free collection of other companies with strong earnings growth and low P/E ratios.