Is AT & S Austria Technologie & Systemtechnik Aktiengesellschaft (VIE:ATS) Potentially Undervalued?

AT & S Austria Technologie & Systemtechnik Aktiengesellschaft (VIE:ATS), might not be a large cap stock, but it led the WBAG gainers with a relatively large price hike in the past couple of weeks. While good news for shareholders, the company has traded much higher in the past year. 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? Today we will analyse the most recent data on AT & S Austria Technologie & Systemtechnik’s outlook and valuation to see if the opportunity still exists.

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What's The Opportunity In AT & S Austria Technologie & Systemtechnik?

Good news, investors! AT & S Austria Technologie & Systemtechnik is still a bargain right now according to our price multiple model, which compares the company's price-to-earnings ratio to the industry average. In this instance, we’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. we find that AT & S Austria Technologie & Systemtechnik’s ratio of 9.85x is below its peer average of 22.24x, which indicates the stock is trading at a lower price compared to the Electronic industry. What’s more interesting is that, AT & S Austria Technologie & Systemtechnik’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

See our latest analysis for AT & S Austria Technologie & Systemtechnik

Can we expect growth from AT & S Austria Technologie & Systemtechnik?

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 AT & S Austria Technologie & Systemtechnik, it is expected to deliver a negative earnings growth of -14%, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.

What This Means For You

Are you a shareholder? Although ATS is currently trading below the industry PE ratio, the adverse prospect of negative growth brings about some degree of risk. Consider whether you want to increase your portfolio exposure to ATS, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you’ve been keeping an eye on ATS for a while, but hesitant on making the leap, we recommend you dig deeper into the stock. Given its current price multiple, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

If you want to dive deeper into AT & S Austria Technologie & Systemtechnik, you'd also look into what risks it is currently facing. Case in point: We've spotted 3 warning signs for AT & S Austria Technologie & Systemtechnik you should be aware of.

If you are no longer interested in AT & S Austria Technologie & Systemtechnik, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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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.