Civista Bancshares, Inc. (NASDAQ:CIVB), operating in the financial services industry based in United States, received a lot of attention from a substantial price movement on the NASDAQCM over the last few months, increasing to US$24.07 at one point, and dropping to the lows of US$21.22. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Civista Bancshares’s current trading price of US$22.22 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Civista Bancshares’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
View our latest analysis for Civista Bancshares
What’s the opportunity in Civista Bancshares?
Great news for investors – Civista Bancshares is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $28.98, but it is currently trading at US$22.22 on the share market, meaning that there is still an opportunity to buy now. Another thing to keep in mind is that Civista Bancshares’s share price may be quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.
What does the future of Civista Bancshares look like?
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. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Though in the case of Civista Bancshares, it is expected to deliver a relatively unexciting earnings growth of 6.9%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.
What this means for you:
Are you a shareholder? Even though growth is relatively muted, since CIVB is currently undervalued, it may be a great time to increase your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on CIVB for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy CIVB. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Civista Bancshares. You can find everything you need to know about Civista Bancshares in the latest infographic research report. If you are no longer interested in Civista Bancshares, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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