When Should You Buy Greenyard NV (EBR:GREEN)?

Greenyard NV (EBR:GREEN), might not be a large cap stock, but it received a lot of attention from a substantial price increase on the ENXTBR over the last few months. 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 Greenyard’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for Greenyard

What is Greenyard worth?

Great news for investors – Greenyard is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is €10.35, but it is currently trading at €6.27 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Greenyard’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 Greenyard 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. However, with a relatively muted revenue growth of 8.8% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Greenyard, at least in the short term.

What this means for you:

Are you a shareholder? Even though growth is relatively muted, since GREEN is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. 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 GREEN for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy GREEN. 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.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. For example - Greenyard has 1 warning sign we think you should be aware of.

If you are no longer interested in Greenyard, 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. 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.
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