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    Elhim Iskra AD's (BUL:ELHM) 47% Dip In Price Shows Sentiment Is Matching Revenues

    Simply Wall St·01/02/2026 04:16:22
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    The Elhim Iskra AD (BUL:ELHM) share price has fared very poorly over the last month, falling by a substantial 47%. Longer-term shareholders will rue the drop in the share price, since it's now virtually flat for the year after a promising few quarters.

    Following the heavy fall in price, Elhim Iskra AD may be sending buy signals at present with its price-to-sales (or "P/S") ratio of 0.3x, considering almost half of all companies in the Electrical industry in Bulgaria have P/S ratios greater than 1.2x and even P/S higher than 4x aren't out of the ordinary. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's limited.

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    View our latest analysis for Elhim Iskra AD

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

    How Elhim Iskra AD Has Been Performing

    For instance, Elhim Iskra AD's receding revenue in recent times would have to be some food for thought. It might be that many expect the disappointing revenue performance to continue or accelerate, which has repressed the P/S. If you like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's out of favour.

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

    Is There Any Revenue Growth Forecasted For Elhim Iskra AD?

    Elhim Iskra AD's P/S ratio would be typical for a company that's only expected to deliver limited growth, and importantly, perform worse than the industry.

    Retrospectively, the last year delivered a frustrating 20% decrease to the company's top line. This means it has also seen a slide in revenue over the longer-term as revenue is down 32% in total over the last three years. So unfortunately, we have to acknowledge that the company has not done a great job of growing revenue over that time.

    Comparing that to the industry, which is predicted to deliver 7.5% growth in the next 12 months, the company's downward momentum based on recent medium-term revenue results is a sobering picture.

    With this information, we are not surprised that Elhim Iskra AD is trading at a P/S lower than the industry. Nonetheless, there's no guarantee the P/S has reached a floor yet with revenue going in reverse. Even just maintaining these prices could be difficult to achieve as recent revenue trends are already weighing down the shares.

    The Key Takeaway

    Elhim Iskra AD's P/S has taken a dip along with its share price. 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.

    Our examination of Elhim Iskra AD confirms that the company's shrinking revenue over the past medium-term is a key factor in its low price-to-sales ratio, given the industry is projected to grow. Right now shareholders are accepting the low P/S as they concede future revenue probably won't provide any pleasant surprises either. Given the current circumstances, it seems unlikely that the share price will experience any significant movement in either direction in the near future if recent medium-term revenue trends persist.

    There are also other vital risk factors to consider and we've discovered 3 warning signs for Elhim Iskra AD (2 are a bit concerning!) that you should be aware of before investing here.

    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.