• 简

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

    Thinkific Labs Inc. (TSE:THNC) Not Doing Enough For Some Investors As Its Shares Slump 26%

    Simply Wall St·12/03/2025 10:16:02
    语音播报

    Thinkific Labs Inc. (TSE:THNC) shares have had a horrible month, losing 26% after a relatively good period beforehand. Instead of being rewarded, shareholders who have already held through the last twelve months are now sitting on a 41% share price drop.

    Although its price has dipped substantially, Thinkific Labs may still look like a strong buying opportunity at present with its price-to-sales (or "P/S") ratio of 1.2x, considering almost half of all companies in the Software industry in Canada have P/S ratios greater than 3.9x and even P/S higher than 11x 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 so limited.

    AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

    See our latest analysis for Thinkific Labs

    ps-multiple-vs-industry
    TSX:THNC Price to Sales Ratio vs Industry December 3rd 2025

    What Does Thinkific Labs' P/S Mean For Shareholders?

    Thinkific Labs could be doing better as it's been growing revenue less than most other companies lately. Perhaps the market is expecting the current trend of poor revenue growth to continue, which has kept the P/S suppressed. If you still like the company, you'd be hoping revenue doesn't get any worse and that you could pick up some stock while it's out of favour.

    If you'd like to see what analysts are forecasting going forward, you should check out our free report on Thinkific Labs.

    Is There Any Revenue Growth Forecasted For Thinkific Labs?

    In order to justify its P/S ratio, Thinkific Labs would need to produce anemic growth that's substantially trailing the industry.

    If we review the last year of revenue growth, the company posted a worthy increase of 11%. Pleasingly, revenue has also lifted 49% in aggregate from three years ago, partly thanks to the last 12 months of growth. So we can start by confirming that the company has done a great job of growing revenues over that time.

    Looking ahead now, revenue is anticipated to climb by 4.9% during the coming year according to the five analysts following the company. With the industry predicted to deliver 35% growth, the company is positioned for a weaker revenue result.

    With this in consideration, its clear as to why Thinkific Labs' P/S is falling short industry peers. Apparently many shareholders weren't comfortable holding on while the company is potentially eyeing a less prosperous future.

    What Does Thinkific Labs' P/S Mean For Investors?

    Shares in Thinkific Labs have plummeted and its P/S has followed suit. Using the price-to-sales ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects.

    As expected, our analysis of Thinkific Labs' analyst forecasts confirms that the company's underwhelming revenue outlook is a major contributor to its low P/S. Right now shareholders are accepting the low P/S as they concede future revenue probably won't provide any pleasant surprises. The company will need a change of fortune to justify the P/S rising higher in the future.

    Plus, you should also learn about these 3 warning signs we've spotted with Thinkific Labs (including 1 which is a bit concerning).

    If strong companies turning a profit tickle your fancy, then you'll want to check out this free list of interesting companies that trade on a low P/E (but have proven they can grow earnings).