The Vivos Therapeutics, Inc. (NASDAQ:VVOS) share price has softened a substantial 48% over the previous 30 days, handing back much of the gains the stock has made lately. The recent drop completes a disastrous twelve months for shareholders, who are sitting on a 79% loss during that time.

Although its price has dipped substantially, there still wouldn't be many who think Vivos Therapeutics' price-to-sales (or "P/S") ratio of 0.5x is worth a mention when the median P/S in the United States' Healthcare industry is similar at about 1x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.

How Has Vivos Therapeutics Performed Recently?

While the industry has experienced revenue growth lately, Vivos Therapeutics' revenue has gone into reverse gear, which is not great. Perhaps the market is expecting its poor revenue performance to improve, keeping the P/S from dropping. If not, then existing shareholders may be a little nervous about the viability of the share price.

How Is Vivos Therapeutics' Revenue Growth Trending?

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

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 12%. This has soured the latest three-year period, which nevertheless managed to deliver a decent 13% overall rise in revenue. Accordingly, while they would have preferred to keep the run going, shareholders would be roughly satisfied with the medium-term rates of revenue growth.

Turning to the outlook, the next year should generate growth of 20% as estimated by the only analyst watching the company. That's shaping up to be materially higher than the 6.8% growth forecast for the broader industry.

With this in consideration, we find it intriguing that Vivos Therapeutics' P/S is closely matching its industry peers. It may be that most investors aren't convinced the company can achieve future growth expectations.

What We Can Learn From Vivos Therapeutics' P/S?

Following Vivos Therapeutics' share price tumble, its P/S is just clinging on to the industry median P/S. While the price-to-sales ratio shouldn't be the defining factor in whether you buy a stock or not, it's quite a capable barometer of revenue expectations.

Despite enticing revenue growth figures that outpace the industry, Vivos Therapeutics' P/S isn't quite what we'd expect. When we see a strong revenue outlook, with growth outpacing the industry, we can only assume potential uncertainty around these figures are what might be placing slight pressure on the P/S ratio. This uncertainty seems to be reflected in the share price which, while stable, could be higher given the revenue forecasts.

There are also other vital risk factors to consider and we've discovered 4 warning signs for Vivos Therapeutics (2 are significant!) that you should be aware of before investing here.

If you're unsure about the strength of Vivos Therapeutics' 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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