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    Not Many Are Piling Into Etropal AD (BUL:ETR) Stock Yet As It Plummets 44%

    Simply Wall St·01/02/2026 04:38:27
    語音播報

    Etropal AD (BUL:ETR) shares have had a horrible month, losing 44% after a relatively good period beforehand. To make matters worse, the recent drop has wiped out a year's worth of gains with the share price now back where it started a year ago.

    Following the heavy fall in price, Etropal AD may be sending very bullish signals at the moment with its price-to-sales (or "P/S") ratio of 0.6x, since almost half of all companies in the Medical Equipment industry in Bulgaria have P/S ratios greater than 3.2x and even P/S higher than 7x are not unusual. However, the P/S might be quite low for a reason and it requires further investigation to determine if it's justified.

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    Check out our latest analysis for Etropal AD

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

    How Etropal AD Has Been Performing

    The revenue growth achieved at Etropal AD over the last year would be more than acceptable for most companies. Perhaps the market is expecting this acceptable revenue performance to take a dive, which has kept the P/S suppressed. 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 Etropal AD will help you shine a light on its historical performance.

    What Are Revenue Growth Metrics Telling Us About The Low P/S?

    Etropal AD's P/S ratio would be typical for a company that's expected to deliver very poor growth or even falling revenue, and importantly, perform much worse than the industry.

    Retrospectively, the last year delivered an exceptional 24% gain to the company's top line. Pleasingly, revenue has also lifted 90% in aggregate from three years ago, thanks to the last 12 months of growth. Accordingly, shareholders would have definitely welcomed those medium-term rates of revenue growth.

    This is in contrast to the rest of the industry, which is expected to grow by 6.4% over the next year, materially lower than the company's recent medium-term annualised growth rates.

    In light of this, it's peculiar that Etropal AD's P/S sits below the majority of other companies. Apparently some shareholders believe the recent performance has exceeded its limits and have been accepting significantly lower selling prices.

    The Bottom Line On Etropal AD's P/S

    Having almost fallen off a cliff, Etropal AD's share price has pulled its P/S way down as well. 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're very surprised to see Etropal AD currently trading on a much lower than expected P/S since its recent three-year growth is higher than the wider industry forecast. When we see strong revenue with faster-than-industry growth, we assume there are some significant underlying risks to the company's ability to make money which is applying downwards pressure on the P/S ratio. While recent revenue trends over the past medium-term suggest that the risk of a price decline is low, investors appear to perceive a likelihood of revenue fluctuations in the future.

    Plus, you should also learn about these 2 warning signs we've spotted with Etropal AD (including 1 which is potentially serious).

    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.