• 繁

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

    Risks Still Elevated At These Prices As Luotea Oyj (HEL:LAT1V) Shares Dive 74%

    Simply Wall St·01/03/2026 05:32:44
    語音播報

    The Luotea Oyj (HEL:LAT1V) share price has fared very poorly over the last month, falling by a substantial 74%. The recent drop completes a disastrous twelve months for shareholders, who are sitting on a 68% loss during that time.

    Even after such a large drop in price, you could still be forgiven for feeling indifferent about Luotea Oyj's P/S ratio of 0.1x, since the median price-to-sales (or "P/S") ratio for the Commercial Services industry in Finland is also close to 0.4x. Although, it's not wise to simply ignore the P/S without explanation as investors may be disregarding a distinct opportunity or a costly mistake.

    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.

    View our latest analysis for Luotea Oyj

    ps-multiple-vs-industry
    HLSE:LAT1V Price to Sales Ratio vs Industry January 3rd 2026

    What Does Luotea Oyj's P/S Mean For Shareholders?

    Luotea Oyj could be doing better as its revenue has been going backwards lately while most other companies have been seeing positive revenue growth. One possibility is that the P/S ratio is moderate because investors think this poor revenue performance will turn around. If not, then existing shareholders may be a little nervous about the viability of the share price.

    Keen to find out how analysts think Luotea Oyj's future stacks up against the industry? In that case, our free report is a great place to start.

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

    In order to justify its P/S ratio, Luotea Oyj would need to produce growth that's similar to the industry.

    In reviewing the last year of financials, we were disheartened to see the company's revenues fell to the tune of 1.5%. As a result, revenue from three years ago have also fallen 11% overall. So unfortunately, we have to acknowledge that the company has not done a great job of growing revenue over that time.

    Turning to the outlook, the next year should generate growth of 0.9% as estimated by the two analysts watching the company. That's shaping up to be materially lower than the 4.3% growth forecast for the broader industry.

    With this information, we find it interesting that Luotea Oyj is trading at a fairly similar P/S compared to the industry. Apparently many investors in the company are less bearish than analysts indicate and aren't willing to let go of their stock right now. Maintaining these prices will be difficult to achieve as this level of revenue growth is likely to weigh down the shares eventually.

    The Bottom Line On Luotea Oyj's P/S

    Following Luotea Oyj's share price tumble, its P/S is just clinging on to the industry median P/S. While the price-to-sales ratio shouldn't be the defining factor in whether you buy a stock or not, it's quite a capable barometer of revenue expectations.

    When you consider that Luotea Oyj's revenue growth estimates are fairly muted compared to the broader industry, it's easy to see why we consider it unexpected to be trading at its current P/S ratio. When we see companies with a relatively weaker revenue outlook compared to the industry, we suspect the share price is at risk of declining, sending the moderate P/S lower. This places shareholders' investments at risk and potential investors in danger of paying an unnecessary premium.

    And what about other risks? Every company has them, and we've spotted 5 warning signs for Luotea Oyj (of which 1 is significant!) 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.