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    There's Reason For Concern Over EKINOPS S.A.'s (EPA:EKI) Massive 31% Price Jump

    Simply Wall St·12/21/2025 06:28:14
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    Those holding EKINOPS S.A. (EPA:EKI) shares would be relieved that the share price has rebounded 31% in the last thirty days, but it needs to keep going to repair the recent damage it has caused to investor portfolios. Not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 46% in the last twelve months.

    Even after such a large jump in price, you could still be forgiven for feeling indifferent about EKINOPS' P/S ratio of 0.4x, since the median price-to-sales (or "P/S") ratio for the Communications industry in France is also close to 0.6x. While this might not raise any eyebrows, if the P/S ratio is not justified investors could be missing out on a potential opportunity or ignoring looming disappointment.

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    View our latest analysis for EKINOPS

    ps-multiple-vs-industry
    ENXTPA:EKI Price to Sales Ratio vs Industry December 21st 2025

    How EKINOPS Has Been Performing

    EKINOPS could be doing better as it's been growing revenue less than most other companies lately. One possibility is that the P/S ratio is moderate because investors think this lacklustre 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 EKINOPS' future stacks up against the industry? In that case, our free report is a great place to start.

    How Is EKINOPS' Revenue Growth Trending?

    EKINOPS' P/S ratio would be typical for a company that's only expected to deliver moderate growth, and importantly, perform in line with the industry.

    Taking a look back first, we see that there was hardly any revenue growth to speak of for the company over the past year. Likewise, not much has changed from three years ago as revenue have been stuck during that whole time. Therefore, it's fair to say that revenue growth has definitely eluded the company recently.

    Looking ahead now, revenue is anticipated to slump, contracting by 8.7% during the coming year according to the five analysts following the company. Meanwhile, the broader industry is forecast to expand by 5.8%, which paints a poor picture.

    With this information, we find it concerning that EKINOPS is trading at a fairly similar P/S compared to the industry. It seems most investors are hoping for a turnaround in the company's business prospects, but the analyst cohort is not so confident this will happen. Only the boldest would assume these prices are sustainable as these declining revenues are likely to weigh on the share price eventually.

    The Final Word

    EKINOPS appears to be back in favour with a solid price jump bringing its P/S back in line with other companies in the industry It's argued the price-to-sales ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator.

    It appears that EKINOPS currently trades on a higher than expected P/S for a company whose revenues are forecast to decline. When we see a gloomy outlook like this, our immediate thoughts are that the share price is at risk of declining, negatively impacting P/S. If the poor revenue outlook tells us one thing, it's that these current price levels could be unsustainable.

    Having said that, be aware EKINOPS is showing 2 warning signs in our investment analysis, and 1 of those shouldn't be ignored.

    If these risks are making you reconsider your opinion on EKINOPS, explore our interactive list of high quality stocks to get an idea of what else is out there.