What Is Cenergy Holdings SA's (EBR:CENER) Share Price Doing?

While Cenergy Holdings SA (EBR:CENER) might not have the largest market cap around , it received a lot of attention from a substantial price increase on the ENXTBR over the last few months. The company is inching closer to its yearly highs following the recent share price climb. As a well-established company, which tends to be well-covered by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s take a look at Cenergy Holdings’s outlook and value based on the most recent financial data to see if the opportunity still exists.

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What Is Cenergy Holdings Worth?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 7.0% below our intrinsic value, which means if you buy Cenergy Holdings today, you’d be paying a fair price for it. And if you believe that the stock is really worth €16.36, then there’s not much of an upside to gain from mispricing. Furthermore, Cenergy Holdings’s low beta implies that the stock is less volatile than the wider market.

See our latest analysis for Cenergy Holdings

Can we expect growth from Cenergy Holdings?

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. Cenergy Holdings' earnings over the next few years are expected to increase by 32%, 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? CENER’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on CENER, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

So while earnings quality is important, it's equally important to consider the risks facing Cenergy Holdings at this point in time. Case in point: We've spotted 2 warning signs for Cenergy Holdings you should be mindful of and 1 of these is significant.

If you are no longer interested in Cenergy Holdings, 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.