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    Investors Appear Satisfied With Actic Group AB (publ)'s (STO:ATIC) Prospects As Shares Rocket 26%

    Simply Wall St·12/31/2025 04:13:36
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    The Actic Group AB (publ) (STO:ATIC) share price has done very well over the last month, posting an excellent gain of 26%. The last 30 days were the cherry on top of the stock's 518% gain in the last year, which is nothing short of spectacular.

    In spite of the firm bounce in price, there still wouldn't be many who think Actic Group's price-to-sales (or "P/S") ratio of 1.1x is worth a mention when the median P/S in Sweden's Hospitality industry is similar at about 1.4x. 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 Actic Group

    ps-multiple-vs-industry
    OM:ATIC Price to Sales Ratio vs Industry December 31st 2025

    How Has Actic Group Performed Recently?

    Actic Group has been doing a decent job lately as it's been growing revenue at a reasonable pace. One possibility is that the P/S is moderate because investors think this good revenue growth might only be parallel to the broader industry in the near future. Those who are bullish on Actic Group 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 Actic Group, take a look at this free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.

    Is There Some Revenue Growth Forecasted For Actic Group?

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

    If we review the last year of revenue growth, the company posted a worthy increase of 6.7%. Still, revenue has barely risen at all in aggregate from three years ago, which is not ideal. Therefore, it's fair to say that revenue growth has been inconsistent recently for the company.

    It's interesting to note that the rest of the industry is similarly expected to grow by 1.2% over the next year, which is fairly even with the company's recent medium-term annualised growth rates.

    With this information, we can see why Actic Group is trading at a fairly similar P/S to the industry. Apparently shareholders are comfortable to simply hold on assuming the company will continue keeping a low profile.

    The Bottom Line On Actic Group's P/S

    Its shares have lifted substantially and now Actic Group's P/S is back within range of the industry median. Typically, we'd caution against reading too much into price-to-sales ratios when settling on investment decisions, though it can reveal plenty about what other market participants think about the company.

    It appears to us that Actic Group maintains its moderate P/S off the back of its recent three-year growth being in line with the wider industry forecast. With previous revenue trends that keep up with the current industry outlook, it's hard to justify the company's P/S ratio deviating much from it's current point. Unless the recent medium-term conditions change, they will continue to support the share price at these levels.

    There are also other vital risk factors to consider and we've discovered 3 warning signs for Actic Group (1 is a bit concerning!) that you should be aware of before investing here.

    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.