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    Further Upside For Tenax International S.p.A. (BIT:TNX) Shares Could Introduce Price Risks After 25% Bounce

    Simply Wall St·12/31/2025 04:15:40
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    Tenax International S.p.A. (BIT:TNX) shareholders are no doubt pleased to see that the share price has bounced 25% in the last month, although it is still struggling to make up recently lost ground. Unfortunately, the gains of the last month did little to right the losses of the last year with the stock still down 34% over that time.

    In spite of the firm bounce in price, considering around half the companies operating in Italy's Machinery industry have price-to-sales ratios (or "P/S") above 0.9x, you may still consider Tenax International as an solid investment opportunity with its 0.3x P/S ratio. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the reduced P/S.

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    See our latest analysis for Tenax International

    ps-multiple-vs-industry
    BIT:TNX Price to Sales Ratio vs Industry December 31st 2025

    How Tenax International Has Been Performing

    Tenax International hasn't been tracking well recently as its declining revenue compares poorly to other companies, which have seen some growth in their revenues on average. It seems that many are expecting the poor revenue performance to persist, which has repressed the P/S ratio. If this is the case, then existing shareholders will probably struggle to get excited about the future direction of the share price.

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

    Is There Any Revenue Growth Forecasted For Tenax International?

    The only time you'd be truly comfortable seeing a P/S as low as Tenax International's is when the company's growth is on track to lag the industry.

    In reviewing the last year of financials, we were disheartened to see the company's revenues fell to the tune of 29%. Even so, admirably revenue has lifted 36% in aggregate from three years ago, notwithstanding the last 12 months. So we can start by confirming that the company has generally done a very good job of growing revenue over that time, even though it had some hiccups along the way.

    Turning to the outlook, the next year should generate growth of 30% as estimated by the one analyst watching the company. With the industry only predicted to deliver 5.0%, the company is positioned for a stronger revenue result.

    In light of this, it's peculiar that Tenax International's P/S sits below the majority of other companies. Apparently some shareholders are doubtful of the forecasts and have been accepting significantly lower selling prices.

    The Key Takeaway

    Despite Tenax International's share price climbing recently, its P/S still lags most other companies. We'd say the price-to-sales ratio's power isn't primarily as a valuation instrument but rather to gauge current investor sentiment and future expectations.

    To us, it seems Tenax International currently trades on a significantly depressed P/S given its forecasted revenue growth is higher than the rest of its industry. There could be some major risk factors that are placing downward pressure on the P/S ratio. At least price risks look to be very low, but investors seem to think future revenues could see a lot of volatility.

    And what about other risks? Every company has them, and we've spotted 4 warning signs for Tenax International you should know about.

    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).