【fn 509 tactical holster with light and red dot】What Is MS Industrie AG’s (ETR:MSAG) Share Price Doing?

Want to help shape the future of investing tools?fn 509 tactical holster with light and red dot Participate in a

short research study

and receive a 6-month subscription to the award winning Simply Wall St research tool (valued at $60)!

MS Industrie AG (

ETR:MSAG

), which is in the machinery business, and is based in Germany, saw a decent share price growth in the teens level on the XTRA over the last few months. As a small cap stock, which tends to lack high analyst coverage, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let’s examine MS Industrie’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

View our latest analysis for MS Industrie

Is MS Industrie still cheap?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 13.51% above my intrinsic value, which means if you buy MS Industrie today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is €2.57, then there isn’t really any room for the share price grow beyond what it’s currently trading. So, is there another chance to buy low in the future? Given that MS Industrie’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.

What does the future of MS Industrie look like?

XTRA:MSAG Future Profit February 1st 19

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. With profit expected to grow by 25% over the next couple of years, the future seems bright for MS Industrie. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder?

MSAG’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Story continues

Are you a potential investor?

If you’ve been keeping an eye on MSAG, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on MS Industrie. You can find everything you need to know about MS Industrie in

the latest infographic research report

. If you are no longer interested in MS Industrie, you can use our free platform to see my list of over

50 other stocks with a high growth potential

.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at

[email protected]

.

View comments