The Barfresh Food Group, Inc. (NASDAQ:BRFH) share price has done very well over the last month, posting an excellent gain of 51%. The last 30 days bring the annual gain to a very sharp 28%.
Since its price has surged higher, given around half the companies in the United States’ Food industry have price-to-sales ratios (or “P/S”) below 0.9x, you may consider Barfresh Food Group as a stock to avoid entirely with its 5.6x 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.
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NasdaqCM:BRFH Price to Sales Ratio vs Industry September 19th 2025 What Does Barfresh Food Group’s Recent Performance Look Like?
Recent times have been advantageous for Barfresh Food Group as its revenues have been rising faster than most other companies. The P/S is probably high because investors think this strong revenue performance will continue. However, if this isn’t the case, investors might get caught out paying too much for the stock.
If you’d like to see what analysts are forecasting going forward, you should check out our free report on Barfresh Food Group. How Is Barfresh Food Group’s Revenue Growth Trending?
There’s an inherent assumption that a company should far outperform the industry for P/S ratios like Barfresh Food Group’s to be considered reasonable.
Taking a look back first, we see that the company grew revenue by an impressive 25% last year. Revenue has also lifted 13% in aggregate from three years ago, mostly thanks to the last 12 months of growth. Accordingly, shareholders would have probably been satisfied with the medium-term rates of revenue growth.
Turning to the outlook, the next year should generate growth of 42% as estimated by the dual analysts watching the company. That’s shaping up to be materially higher than the 5.1% growth forecast for the broader industry.
With this in mind, it’s not hard to understand why Barfresh Food Group’s P/S is high relative to its industry peers. Apparently shareholders aren’t keen to offload something that is potentially eyeing a more prosperous future.
What We Can Learn From Barfresh Food Group’s P/S?
The strong share price surge has lead to Barfresh Food Group’s P/S soaring as well. Generally, our preference is to limit the use of the price-to-sales ratio to establishing what the market thinks about the overall health of a company.
We’ve established that Barfresh Food Group maintains its high P/S on the strength of its forecasted revenue growth being higher than the the rest of the Food industry, as expected. At this stage investors feel the potential for a deterioration in revenues is quite remote, justifying the elevated P/S ratio. 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 4 warning signs for Barfresh Food Group (2 are potentially serious!) that you should be aware of.
If you’re unsure about the strength of Barfresh Food 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.
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