When Should You Buy AT & S Austria Technologie & Systemtechnik Aktiengesellschaft (VIE:ATS)?

While AT & S Austria Technologie & Systemtechnik Aktiengesellschaft (VIE:ATS) might not be the most widely known stock at the moment, it saw a decent share price growth in the teens level on the WBAG over the last few months. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an 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 the opportunity still exists.

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

What Is AT & S Austria Technologie & Systemtechnik Worth?

Good news, investors! AT & S Austria Technologie & Systemtechnik is still a bargain right now according to my price multiple model, which compares 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 4.39x is below its peer average of 20.13x, 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 kind of growth will AT & S Austria Technologie & Systemtechnik generate?

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. AT & S Austria Technologie & Systemtechnik's earnings over the next few years are expected to increase by 42%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

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 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 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 enter the stock. Its prosperous 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 if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Our analysis shows 4 warning signs for AT & S Austria Technologie & Systemtechnik (2 don't sit too well with us!) and we strongly recommend you look at them before investing.

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.