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    OptiCore Inc.'s (KOSDAQ:380540) Shares Climb 26% But Its Business Is Yet to Catch Up

    Simply Wall St·01/05/2026 23:05:04
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    OptiCore Inc. (KOSDAQ:380540) shares have continued their recent momentum with a 26% gain in the last month alone. Looking back a bit further, it's encouraging to see the stock is up 95% in the last year.

    Following the firm bounce in price, when almost half of the companies in Korea's Communications industry have price-to-sales ratios (or "P/S") below 1.1x, you may consider OptiCore as a stock not worth researching with its 7.8x P/S ratio. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the highly elevated P/S.

    We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

    See our latest analysis for OptiCore

    ps-multiple-vs-industry
    KOSDAQ:A380540 Price to Sales Ratio vs Industry January 5th 2026

    How OptiCore Has Been Performing

    As an illustration, revenue has deteriorated at OptiCore over the last year, which is not ideal at all. One possibility is that the P/S is high because investors think the company will still do enough to outperform the broader industry in the near future. If not, then existing shareholders may be quite nervous about the viability of the share price.

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

    How Is OptiCore's Revenue Growth Trending?

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

    Taking a look back first, the company's revenue growth last year wasn't something to get excited about as it posted a disappointing decline of 30%. As a result, revenue from three years ago have also fallen 39% overall. So unfortunately, we have to acknowledge that the company has not done a great job of growing revenue over that time.

    Weighing that medium-term revenue trajectory against the broader industry's one-year forecast for expansion of 51% shows it's an unpleasant look.

    In light of this, it's alarming that OptiCore's P/S sits above the majority of other companies. Apparently many investors in the company are way more bullish than recent times would indicate and aren't willing to let go of their stock at any price. There's a very good chance existing shareholders are setting themselves up for future disappointment if the P/S falls to levels more in line with the recent negative growth rates.

    What We Can Learn From OptiCore's P/S?

    The strong share price surge has lead to OptiCore's P/S soaring as well. 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.

    We've established that OptiCore currently trades on a much higher than expected P/S since its recent revenues have been in decline over the medium-term. With a revenue decline on investors' minds, the likelihood of a souring sentiment is quite high which could send the P/S back in line with what we'd expect. If recent medium-term revenue trends continue, it will place shareholders' investments at significant risk and potential investors in danger of paying an excessive premium.

    There are also other vital risk factors to consider and we've discovered 4 warning signs for OptiCore (3 are a bit unpleasant!) that you should be aware of before investing here.

    It's important to make sure you look for a great company, not just the first idea you come across. So if growing profitability aligns with your idea of a great company, take a peek at this free list of interesting companies with strong recent earnings growth (and a low P/E).