Focus Dynamics Group Berhad (KLSE:FOCUS) shareholders would be excited to see that the share price has had a great month, posting a 33% gain and recovering from prior weakness. While recent buyers may be laughing, long-term holders might not be as pleased since the recent gain only brings the stock back to where it started a year ago.

Although its price has surged higher, there still wouldn't be many who think Focus Dynamics Group Berhad's price-to-sales (or "P/S") ratio of 1.9x is worth a mention when the median P/S in Malaysia's Hospitality industry is similar at about 1.7x. While this might not raise any eyebrows, if the P/S ratio is not justified investors could be missing out on a potential opportunity or ignoring looming disappointment.

See our latest analysis for Focus Dynamics Group Berhad

What Does Focus Dynamics Group Berhad's P/S Mean For Shareholders?

Recent times have been quite advantageous for Focus Dynamics Group Berhad as its revenue has been rising very briskly. Perhaps the market is expecting future revenue performance to taper off, which has kept the P/S from rising. If that doesn't eventuate, then existing shareholders have reason to be feeling optimistic about the future direction of the share price.

Although there are no analyst estimates available for Focus Dynamics Group Berhad, take a look at this free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.

Is There Some Revenue Growth Forecasted For Focus Dynamics Group Berhad?

The only time you'd be comfortable seeing a P/S like Focus Dynamics Group Berhad's is when the company's growth is tracking the industry closely.

Retrospectively, the last year delivered an exceptional 103% gain to the company's top line. The strong recent performance means it was also able to grow revenue by 65% in total over the last three years. Therefore, it's fair to say the revenue growth recently has been superb for the company.

Comparing that to the industry, which is only predicted to deliver 6.1% growth in the next 12 months, the company's momentum is stronger based on recent medium-term annualised revenue results.

In light of this, it's curious that Focus Dynamics Group Berhad's P/S sits in line with the majority of other companies. It may be that most investors are not convinced the company can maintain its recent growth rates.

The Bottom Line On Focus Dynamics Group Berhad's P/S

Its shares have lifted substantially and now Focus Dynamics Group Berhad's P/S is back within range of the industry median. 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.