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    There's No Escaping Greenlane Renewables Inc.'s (TSE:GRN) Muted Revenues Despite A 30% Share Price Rise

    Simply Wall St·12/21/2025 13:38:25
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    Those holding Greenlane Renewables Inc. (TSE:GRN) shares would be relieved that the share price has rebounded 30% in the last thirty days, but it needs to keep going to repair the recent damage it has caused to investor portfolios. The last month tops off a massive increase of 167% in the last year.

    In spite of the firm bounce in price, Greenlane Renewables' price-to-sales (or "P/S") ratio of 0.9x might still make it look like a buy right now compared to the Oil and Gas industry in Canada, where around half of the companies have P/S ratios above 2.7x and even P/S above 6x are quite common. 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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    See our latest analysis for Greenlane Renewables

    ps-multiple-vs-industry
    TSX:GRN Price to Sales Ratio vs Industry December 21st 2025

    How Greenlane Renewables Has Been Performing

    For instance, Greenlane Renewables' receding revenue in recent times would have to be some food for thought. One possibility is that the P/S is low because investors think the company won't do enough to avoid underperforming the broader industry in the near future. Those who are bullish on Greenlane Renewables will be hoping that this isn't the case so that they can pick up the stock at a lower valuation.

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

    Is There Any Revenue Growth Forecasted For Greenlane Renewables?

    Greenlane Renewables' 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 30% decrease to the company's top line. As a result, revenue from three years ago have also fallen 41% overall. Accordingly, shareholders would have felt downbeat about the medium-term rates of revenue growth.

    Comparing that to the industry, which is predicted to deliver 3.7% growth in the next 12 months, the company's downward momentum based on recent medium-term revenue results is a sobering picture.

    In light of this, it's understandable that Greenlane Renewables' P/S would sit below the majority of other companies. However, we think shrinking revenues are unlikely to lead to a stable P/S over the longer term, which could set up shareholders for future disappointment. Even just maintaining these prices could be difficult to achieve as recent revenue trends are already weighing down the shares.

    The Final Word

    Despite Greenlane Renewables' share price climbing recently, its P/S still lags most other companies. 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.

    As we suspected, our examination of Greenlane Renewables revealed its shrinking revenue over the medium-term is contributing to its low P/S, given the industry is set to grow. At this stage investors feel the potential for an improvement in revenue isn't great enough to justify a higher P/S ratio. Unless the recent medium-term conditions improve, they will continue to form a barrier for the share price around these levels.

    It's always necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Greenlane Renewables, and understanding should be part of your investment process.

    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.