CI Systems (Israel) Ltd.’s (TLV:CISY) 35% Price Boost Is Out Of Tune With Revenues
CI Systems (Israel) Ltd. (TLV:CISY) shareholders would be excited to see that the share price has had a great month, posting a 35% gain and recovering from prior weakness. The last 30 days bring the annual gain to a very sharp 83%.
Although its price has surged higher, there still wouldn’t be many who think CI Systems (Israel)’s price-to-sales (or “P/S”) ratio of 3x is worth a mention when the median P/S in Israel’s Semiconductor industry is similar at about 2.8x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.
