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    I&C Technology Co., Ltd.'s (KOSDAQ:052860) Business Is Trailing The Industry But Its Shares Aren't

    Simply Wall St·12/29/2025 22:37:20
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    With a median price-to-sales (or "P/S") ratio of close to 1.6x in the Semiconductor industry in Korea, you could be forgiven for feeling indifferent about I&C Technology Co., Ltd.'s (KOSDAQ:052860) P/S ratio of 1.2x. 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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    See our latest analysis for I&C Technology

    ps-multiple-vs-industry
    KOSDAQ:A052860 Price to Sales Ratio vs Industry December 29th 2025

    What Does I&C Technology's P/S Mean For Shareholders?

    I&C Technology has been doing a good job lately as it's been growing revenue at a solid pace. Perhaps the market is expecting future revenue performance to only keep up with the broader industry, which has keeping the P/S in line with expectations. Those who are bullish on I&C Technology will be hoping that this isn't the case, so that they can pick up the stock at a lower valuation.

    Although there are no analyst estimates available for I&C Technology, take a look at this free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.

    Do Revenue Forecasts Match The P/S Ratio?

    There's an inherent assumption that a company should be matching the industry for P/S ratios like I&C Technology's to be considered reasonable.

    If we review the last year of revenue growth, the company posted a worthy increase of 8.7%. However, this wasn't enough as the latest three year period has seen an unpleasant 18% overall drop in revenue. So unfortunately, we have to acknowledge that the company has not done a great job of growing revenue over that time.

    Comparing that to the industry, which is predicted to deliver 49% growth in the next 12 months, the company's downward momentum based on recent medium-term revenue results is a sobering picture.

    With this information, we find it concerning that I&C Technology is trading at a fairly similar P/S compared to the industry. It seems most investors are ignoring the recent poor growth rate and are hoping for a turnaround in the company's business prospects. There's a good chance existing shareholders are setting themselves up for future disappointment if the P/S falls to levels more in line with the recent negative growth rates.

    The Bottom Line On I&C Technology's 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.

    Our look at I&C Technology revealed its shrinking revenues over the medium-term haven't impacted the P/S as much as we anticipated, given the industry is set to grow. When we see revenue heading backwards in the context of growing industry forecasts, it'd make sense to expect a possible share price decline on the horizon, sending the moderate P/S lower. If recent medium-term revenue trends continue, it will place shareholders' investments at risk and potential investors in danger of paying an unnecessary premium.

    Having said that, be aware I&C Technology is showing 1 warning sign in our investment analysis, you should know about.

    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.