At R$18.27, Is It Time To Put Fleury S.A. (BVMF:FLRY3) On Your Watch List?

Fleury S.A. (BVMF:FLRY3), is not the largest company out there, but it received a lot of attention from a substantial price increase on the BOVESPA over the last few months. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s examine Fleury’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

Check out our latest analysis for Fleury

What's The Opportunity In Fleury?

According to my valuation model, Fleury seems to be fairly priced at around 7.05% above my intrinsic value, which means if you buy Fleury today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth R$17.07, then there isn’t really any room for the share price grow beyond what it’s currently trading. Furthermore, Fleury’s low beta implies that the stock is less volatile than the wider market.

What does the future of Fleury look like?

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. Fleury's earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? It seems like the market has already priced in FLRY3’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping tabs on FLRY3, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook 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 if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. You'd be interested to know, that we found 3 warning signs for Fleury and you'll want to know about them.

If you are no longer interested in Fleury, 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.