Is Now An Opportune Moment To Examine Exel Composites Oyj (HEL:EXL1V)?

Exel Composites Oyj (HEL:EXL1V), which is in the machinery business, and is based in Finland, saw a double-digit share price rise of over 10% in the past couple of months on the HLSE. Less-covered, small caps sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Let’s take a look at Exel Composites Oyj’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for Exel Composites Oyj

What’s the opportunity in Exel Composites Oyj?

Good news, investors! Exel Composites Oyj is still a bargain right now. My valuation model shows that the intrinsic value for the stock is €6.70, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Although, there may be another chance to buy again in the future. This is because Exel Composites Oyj’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

What does the future of Exel Composites Oyj look like?

HLSE:EXL1V Past and Future Earnings April 17th 2020
HLSE:EXL1V Past and Future Earnings April 17th 2020

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. Exel Composites Oyj’s earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? Since EXL1V is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. 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 EXL1V for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy EXL1V. But before you make any investment decisions, consider other factors such as the track record of its management team, 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 Exel Composites Oyj. You can find everything you need to know about Exel Composites Oyj in the latest infographic research report. If you are no longer interested in Exel Composites Oyj, 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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.