Stock Analysis

Market Participants Recognise OSL Group Limited's (HKG:863) Revenues Pushing Shares 29% Higher

SEHK:863
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OSL Group Limited (HKG:863) shares have continued their recent momentum with a 29% gain in the last month alone. The last month tops off a massive increase of 181% in the last year.

Following the firm bounce in price, when almost half of the companies in Hong Kong's Capital Markets industry have price-to-sales ratios (or "P/S") below 3.6x, you may consider OSL Group as a stock not worth researching with its 25.2x P/S ratio. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's so lofty.

Check out our latest analysis for OSL Group

ps-multiple-vs-industry
SEHK:863 Price to Sales Ratio vs Industry July 7th 2025
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What Does OSL Group's P/S Mean For Shareholders?

OSL Group certainly has been doing a good job lately as it's been growing revenue more than most other companies. It seems the market expects this form will continue into the future, hence the elevated P/S ratio. You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason.

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

How Is OSL Group's Revenue Growth Trending?

There's an inherent assumption that a company should far outperform the industry for P/S ratios like OSL Group's to be considered reasonable.

If we review the last year of revenue growth, the company posted a terrific increase of 79%. As a result, it also grew revenue by 16% in total over the last three years. Therefore, it's fair to say the revenue growth recently has been respectable for the company.

Turning to the outlook, the next three years should generate growth of 54% per year as estimated by the dual analysts watching the company. With the industry only predicted to deliver 11% per year, the company is positioned for a stronger revenue result.

With this information, we can see why OSL Group is trading at such a high P/S compared to the industry. It seems most investors are expecting this strong future growth and are willing to pay more for the stock.

The Bottom Line On OSL Group's P/S

Shares in OSL Group have seen a strong upwards swing lately, which has really helped boost its P/S figure. Using the price-to-sales ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects.

Our look into OSL Group shows that its P/S ratio remains high on the merit of its strong future revenues. It appears that shareholders are confident in the company's future revenues, which is propping up the P/S. It's hard to see the share price falling strongly in the near future under these circumstances.

Before you settle on your opinion, we've discovered 1 warning sign for OSL Group that you should be aware of.

If you're unsure about the strength of OSL Group's business, why not explore our interactive list of stocks with solid business fundamentals for some other companies you may have missed.

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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.

About SEHK:863

OSL Group

An investment holding company, engages in digital assets and blockchain platform business in Hong Kong, Australia, Japan, Singapore, and Mainland China.

High growth potential with excellent balance sheet.

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