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    Genohco., Inc.'s (KOSDAQ:361390) Shares Climb 26% But Its Business Is Yet to Catch Up

    Simply Wall St·01/02/2026 00:06:09
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    Genohco., Inc. (KOSDAQ:361390) shareholders would be excited to see that the share price has had a great month, posting a 26% gain and recovering from prior weakness. Taking a wider view, although not as strong as the last month, the full year gain of 18% is also fairly reasonable.

    Following the firm bounce in price, you could be forgiven for thinking Genohco is a stock not worth researching with a price-to-sales ratios (or "P/S") of 2.8x, considering almost half the companies in Korea's Aerospace & Defense industry have P/S ratios below 2.3x. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the elevated P/S.

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    See our latest analysis for Genohco

    ps-multiple-vs-industry
    KOSDAQ:A361390 Price to Sales Ratio vs Industry January 2nd 2026

    How Genohco Has Been Performing

    Genohco 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. Perhaps the market is expecting the poor revenue to reverse, justifying it's current high P/S.. You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason.

    Keen to find out how analysts think Genohco's future stacks up against the industry? In that case, our free report is a great place to start.

    How Is Genohco's Revenue Growth Trending?

    Genohco's P/S ratio would be typical for a company that's expected to deliver solid growth, and importantly, perform better than the industry.

    In reviewing the last year of financials, we were disheartened to see the company's revenues fell to the tune of 9.9%. That put a dampener on the good run it was having over the longer-term as its three-year revenue growth is still a noteworthy 13% in total. Accordingly, while they would have preferred to keep the run going, shareholders would be roughly satisfied with the medium-term rates of revenue growth.

    Turning to the outlook, the next year should generate growth of 39% as estimated by the two analysts watching the company. That's shaping up to be similar to the 38% growth forecast for the broader industry.

    With this in consideration, we find it intriguing that Genohco's P/S is higher than its industry peers. Apparently many investors in the company are more bullish than analysts indicate and aren't willing to let go of their stock right now. Although, additional gains will be difficult to achieve as this level of revenue growth is likely to weigh down the share price eventually.

    What We Can Learn From Genohco's P/S?

    Genohco shares have taken a big step in a northerly direction, but its P/S is elevated as a result. Generally, our preference is to limit the use of the price-to-sales ratio to establishing what the market thinks about the overall health of a company.

    Seeing as its revenues are forecast to grow in line with the wider industry, it would appear that Genohco currently trades on a higher than expected P/S. When we see revenue growth that just matches the industry, we don't expect elevates P/S figures to remain inflated for the long-term. Unless the company can jump ahead of the rest of the industry in the short-term, it'll be a challenge to maintain the share price at current levels.

    You should always think about risks. Case in point, we've spotted 1 warning sign for Genohco you should be aware of.

    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).