Ichor Holdings, Ltd. (NASDAQ:ICHR) shares have had a really impressive month, gaining 47% after a shaky period beforehand. Not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 16% in the last twelve months.
Although its price has surged higher, Ichor Holdings may still be sending very bullish signals at the moment with its price-to-sales (or “P/S”) ratio of 0.9x, since almost half of all companies in the Semiconductor industry in the United States have P/S ratios greater than 5.2x and even P/S higher than 14x are not unusual. However, the P/S might be quite low for a reason and it requires further investigation to determine if it’s justified.
Check out our latest analysis for Ichor Holdings
NasdaqGS:ICHR Price to Sales Ratio vs Industry January 14th 2026 What Does Ichor Holdings’ Recent Performance Look Like?
Ichor Holdings could be doing better as it’s been growing revenue less than most other companies lately. Perhaps the market is expecting the current trend of poor revenue growth to continue, which has kept the P/S suppressed. If this is the case, then existing shareholders will probably struggle to get excited about the future direction of the share price.
Keen to find out how analysts think Ichor Holdings’ future stacks up against the industry? In that case, our free report is a great place to start. Is There Any Revenue Growth Forecasted For Ichor Holdings?
In order to justify its P/S ratio, Ichor Holdings would need to produce anemic growth that’s substantially trailing the industry.
Taking a look back first, we see that the company grew revenue by an impressive 17% last year. Still, revenue has fallen 24% in total from three years ago, which is quite disappointing. So unfortunately, we have to acknowledge that the company has not done a great job of growing revenues over that time.
Looking ahead now, revenue is anticipated to climb by 5.5% each year during the coming three years according to the five analysts following the company. That’s shaping up to be materially lower than the 29% each year growth forecast for the broader industry.
With this in consideration, its clear as to why Ichor Holdings’ P/S is falling short industry peers. It seems most investors are expecting to see limited future growth and are only willing to pay a reduced amount for the stock.
What We Can Learn From Ichor Holdings’ P/S?
Shares in Ichor Holdings have risen appreciably however, its P/S is still subdued. We’d say the price-to-sales ratio’s power isn’t primarily as a valuation instrument but rather to gauge current investor sentiment and future expectations.
As we suspected, our examination of Ichor Holdings’ analyst forecasts revealed that its inferior revenue outlook is contributing to its low P/S. Right now shareholders are accepting the low P/S as they concede future revenue probably won’t provide any pleasant surprises. It’s hard to see the share price rising strongly in the near future under these circumstances.
You always need to take note of risks, for example – Ichor Holdings has 1 warning sign we think you should be aware of.
If companies with solid past earnings growth is up your alley, you may wish to see this free collection of other companies with strong earnings growth and low P/E ratios.
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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.