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    Benign Growth For DT&CRO CO., Ltd. (KOSDAQ:383930) Underpins Stock's 25% Plummet

    Simply Wall St·12/30/2025 01:22:40
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    DT&CRO CO., Ltd. (KOSDAQ:383930) shares have had a horrible month, losing 25% after a relatively good period beforehand. For any long-term shareholders, the last month ends a year to forget by locking in a 53% share price decline.

    Since its price has dipped substantially, DT&CRO may look like a strong buying opportunity at present with its price-to-sales (or "P/S") ratio of 0.8x, considering almost half of all companies in the Life Sciences industry in Korea have P/S ratios greater than 3.2x and even P/S higher than 15x aren't out of the ordinary. However, the P/S might be quite low for a reason and it requires further investigation to determine if it's justified.

    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.

    Check out our latest analysis for DT&CRO

    ps-multiple-vs-industry
    KOSDAQ:A383930 Price to Sales Ratio vs Industry December 30th 2025

    How DT&CRO Has Been Performing

    DT&CRO certainly has been doing a great job lately as it's been growing its revenue at a really rapid pace. Perhaps the market is expecting future revenue performance to dwindle, which has kept the P/S suppressed. Those who are bullish on DT&CRO 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 DT&CRO's 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 far underperform the industry for P/S ratios like DT&CRO's to be considered reasonable.

    If we review the last year of revenue growth, the company posted a terrific increase of 77%. However, the latest three year period hasn't been as great in aggregate as it didn't manage to provide any growth at all. Accordingly, shareholders probably wouldn't have been overly satisfied with the unstable medium-term growth rates.

    Comparing the recent medium-term revenue trends against the industry's one-year growth forecast of 16% shows it's noticeably less attractive.

    With this in consideration, it's easy to understand why DT&CRO's P/S falls short of the mark set by its industry peers. Apparently many shareholders weren't comfortable holding on to something they believe will continue to trail the wider industry.

    What We Can Learn From DT&CRO's P/S?

    Having almost fallen off a cliff, DT&CRO's share price has pulled its P/S way down as well. 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 DT&CRO 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. Right now shareholders are accepting the low P/S as they concede future revenue probably won't provide any pleasant surprises. If recent medium-term revenue trends continue, it's hard to see the share price experience a reversal of fortunes anytime soon.

    Having said that, be aware DT&CRO is showing 4 warning signs in our investment analysis, and 2 of those are a bit unpleasant.

    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.