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    Market Cool On Formoplast AD's (BUL:FORM) Revenues Pushing Shares 47% Lower

    Simply Wall St·01/02/2026 04:24:17
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    Formoplast AD (BUL:FORM) shareholders won't be pleased to see that the share price has had a very rough month, dropping 47% and undoing the prior period's positive performance. Longer-term shareholders will rue the drop in the share price, since it's now virtually flat for the year after a promising few quarters.

    In spite of the heavy fall in price, you could still be forgiven for feeling indifferent about Formoplast AD's P/S ratio of 0.4x, since the median price-to-sales (or "P/S") ratio for the Machinery industry in Bulgaria is also close to 0.5x. Although, it's not wise to simply ignore the P/S without explanation as investors may be disregarding a distinct opportunity or a costly mistake.

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    View our latest analysis for Formoplast AD

    ps-multiple-vs-industry
    BUL:FORM Price to Sales Ratio vs Industry January 2nd 2026

    What Does Formoplast AD's P/S Mean For Shareholders?

    Recent times have been quite advantageous for Formoplast AD as its revenue has been rising very briskly. The P/S is probably moderate because investors think this strong revenue growth might not be enough to outperform the broader industry in the near future. Those who are bullish on Formoplast AD 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 Formoplast AD, take a look at this free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.

    How Is Formoplast AD's Revenue Growth Trending?

    Formoplast AD's P/S ratio would be typical for a company that's only expected to deliver moderate growth, and importantly, perform in line with the industry.

    Retrospectively, the last year delivered an explosive gain to the company's top line. The amazing performance means it was also able to deliver huge revenue growth over the last three years. Accordingly, shareholders would have been over the moon with those medium-term rates of revenue growth.

    Comparing that recent medium-term revenue trajectory with the industry's one-year growth forecast of 6.0% shows it's noticeably more attractive.

    With this information, we find it interesting that Formoplast AD is trading at a fairly similar P/S compared to the industry. Apparently some shareholders believe the recent performance is at its limits and have been accepting lower selling prices.

    The Key Takeaway

    Following Formoplast AD's share price tumble, its P/S is just clinging on to the industry median 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.

    To our surprise, Formoplast AD revealed its three-year revenue trends aren't contributing to its P/S as much as we would have predicted, given they look better than current industry expectations. It'd be fair to assume that potential risks the company faces could be the contributing factor to the lower than expected P/S. While recent revenue trends over the past medium-term suggest that the risk of a price decline is low, investors appear to see the likelihood of revenue fluctuations in the future.

    And what about other risks? Every company has them, and we've spotted 3 warning signs for Formoplast AD (of which 2 are concerning!) you should know about.

    If these risks are making you reconsider your opinion on Formoplast AD, explore our interactive list of high quality stocks to get an idea of what else is out there.