At R$6.91, Is EcoRodovias Infraestrutura e Logística S.A. (BVMF:ECOR3) Worth Looking At Closely?

EcoRodovias Infraestrutura e Logística S.A. (BVMF:ECOR3), might not be a large cap stock, but it saw a significant share price rise of over 20% in the past couple of months on the BOVESPA. 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. However, what if the stock is still a bargain? Let’s take a look at EcoRodovias Infraestrutura e Logística’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for EcoRodovias Infraestrutura e Logística

Is EcoRodovias Infraestrutura e Logística still cheap?

According to my valuation model, EcoRodovias Infraestrutura e Logística seems to be fairly priced at around 5.87% above my intrinsic value, which means if you buy EcoRodovias Infraestrutura e Logística today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth R$6.53, then there isn’t really any room for the share price grow beyond what it’s currently trading. What's more, EcoRodovias Infraestrutura e Logística’s share price may be more stable over time (relative to the market), as indicated by its low beta.

What does the future of EcoRodovias Infraestrutura e Logística 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. 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. With profit expected to grow by 22% over the next couple of years, the future seems bright for EcoRodovias Infraestrutura e Logística. 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? It seems like the market has already priced in ECOR3’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 an eye on ECOR3, now may not be the most advantageous 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 diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you want to dive deeper into EcoRodovias Infraestrutura e Logística, you'd also look into what risks it is currently facing. For example, we've found that EcoRodovias Infraestrutura e Logística has 2 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.

If you are no longer interested in EcoRodovias Infraestrutura e Logística, 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.