Is Now The Time To Look At Buying AT & S Austria Technologie & Systemtechnik Aktiengesellschaft (VIE:ATS)?

AT & S Austria Technologie & Systemtechnik Aktiengesellschaft (VIE:ATS), is not the largest company out there, but it saw significant share price movement during recent months on the WBAG, rising to highs of €52.80 and falling to the lows of €30.70. 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 AT & S Austria Technologie & Systemtechnik's current trading price of €30.70 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 AT & S Austria Technologie & Systemtechnik’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out the opportunities and risks within the XX Electronic industry.

What Is AT & S Austria Technologie & Systemtechnik Worth?

Great news for investors – AT & S Austria Technologie & Systemtechnik is still trading at a fairly cheap price according to my price multiple model, where I compare the company's price-to-earnings ratio to the industry average. In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that AT & S Austria Technologie & Systemtechnik’s ratio of 6.23x is below its peer average of 19.2x, 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.

What does the future of AT & S Austria Technologie & Systemtechnik look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. With profit expected to grow by 90% over the next couple of years, the future seems bright for AT & S Austria Technologie & Systemtechnik. 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? Since ATS is currently below the industry PE ratio, it may be a great time to increase your holdings in the stock. With an optimistic 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 capital structure to consider, which could explain the current price multiple.

Are you a potential investor? If you’ve been keeping an eye on ATS for a while, now might be the time to make a leap. Its buoyant future profit outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ATS. 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 assessment.

So while earnings quality is important, it's equally important to consider the risks facing AT & S Austria Technologie & Systemtechnik at this point in time. While conducting our analysis, we found that AT & S Austria Technologie & Systemtechnik has 2 warning signs and it would be unwise to ignore them.

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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.