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    YAS Co., Ltd. (KOSDAQ:255440) Stock Rockets 26% As Investors Are Less Pessimistic Than Expected

    Simply Wall St·12/26/2025 22:28:50
    語音播報

    YAS Co., Ltd. (KOSDAQ:255440) shareholders have had their patience rewarded with a 26% share price jump in the last month. Looking back a bit further, it's encouraging to see the stock is up 35% in the last year.

    Following the firm bounce in price, you could be forgiven for thinking YAS is a stock to steer clear of with a price-to-sales ratios (or "P/S") of 4.3x, 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 so lofty.

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    Check out our latest analysis for YAS

    ps-multiple-vs-industry
    KOSDAQ:A255440 Price to Sales Ratio vs Industry December 26th 2025

    What Does YAS' P/S Mean For Shareholders?

    As an illustration, revenue has deteriorated at YAS over the last year, which is not ideal at all. One possibility is that the P/S is high because investors think the company will still do 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.

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

    Do Revenue Forecasts Match The High P/S Ratio?

    In order to justify its P/S ratio, YAS would need to produce outstanding growth that's well in excess of the industry.

    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%. This means it has also seen a slide in revenue over the longer-term as revenue is down 52% in total over the last three years. Accordingly, shareholders would have felt downbeat about the medium-term rates of revenue growth.

    In contrast to the company, the rest of the industry is expected to grow by 49% over the next year, which really puts the company's recent medium-term revenue decline into perspective.

    With this in mind, we find it worrying that YAS' 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. Only the boldest would assume these prices are sustainable as a continuation of recent revenue trends is likely to weigh heavily on the share price eventually.

    The Final Word

    The strong share price surge has lead to YAS' P/S soaring as well. Typically, we'd caution against reading too much into price-to-sales ratios when settling on investment decisions, though it can reveal plenty about what other market participants think about the company.

    Our examination of YAS revealed its shrinking revenue over the medium-term isn't resulting in a P/S as low as we expected, given the industry is set to grow. When we see revenue heading backwards and underperforming the industry forecasts, we feel the possibility of the share price declining is very real, bringing the P/S back into the realm of reasonability. Unless the recent medium-term conditions improve markedly, investors will have a hard time accepting the share price as fair value.

    It is also worth noting that we have found 2 warning signs for YAS (1 shouldn't be ignored!) that you need to take into consideration.

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