Revenues Tell The Story For MINT Société anonyme (EPA:ALMIN) As Its Stock Soars 26%

MINT Société anonyme (EPA:ALMIN) shares have had a really impressive month, gaining 26% after a shaky period beforehand. Looking back a bit further, it's encouraging to see the stock is up 26% in the last year.

In spite of the firm bounce in price, it's still not a stretch to say that MINT Société anonyme's price-to-sales (or "P/S") ratio of 0.4x right now seems quite "middle-of-the-road" compared to the Electric Utilities industry in France, where the median P/S ratio is around 0.9x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.

See our latest analysis for MINT Société anonyme

What Does MINT Société anonyme's Recent Performance Look Like?

MINT Société anonyme has been struggling lately as its revenue has declined faster than most other companies. One possibility is that the P/S is moderate because investors think the company's revenue trend will eventually fall in line with most others in the industry. You'd much rather the company improve its revenue if you still believe in the business. Or at the very least, you'd be hoping it doesn't keep underperforming if your plan is to pick up some stock while it's not in favour.

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

Is There Some Revenue Growth Forecasted For MINT Société anonyme?

The only time you'd be comfortable seeing a P/S like MINT Société anonyme's is when the company's growth is tracking the industry closely.

In reviewing the last year of financials, we were disheartened to see the company's revenues fell to the tune of 47%. As a result, revenue from three years ago have also fallen 23% overall. Accordingly, shareholders would have felt downbeat about the medium-term rates of revenue growth.

Shifting to the future, estimates from the lone analyst covering the company suggest revenue should grow by 7.9% over the next year. With the industry predicted to deliver 7.7% growth , the company is positioned for a comparable revenue result.

In light of this, it's understandable that MINT Société anonyme's P/S sits in line with the majority of other companies. It seems most investors are expecting to see average future growth and are only willing to pay a moderate amount for the stock.

The Key Takeaway

MINT Société anonyme appears to be back in favour with a solid price jump bringing its P/S back in line with other companies in the industry 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.

A MINT Société anonyme's P/S seems about right to us given the knowledge that analysts are forecasting a revenue outlook that is similar to the Electric Utilities industry. At this stage investors feel the potential for an improvement or deterioration in revenue isn't great enough to push P/S in a higher or lower direction. All things considered, if the P/S and revenue estimates contain no major shocks, then it's hard to see the share price moving strongly in either direction in the near future.

Plus, you should also learn about these 3 warning signs we've spotted with MINT Société anonyme (including 1 which is significant).

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

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.