Is Now The Time To Look At Buying Badger Infrastructure Solutions Ltd. (TSE:BDGI)?

Badger Infrastructure Solutions Ltd. (TSE:BDGI), is not the largest company out there, but it received a lot of attention from a substantial price increase on the TSX over the last few months. The company is now trading at yearly-high levels following the recent surge in its share price. 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 take a look at Badger Infrastructure Solutions’s outlook and value based on the most recent financial data to see if the opportunity still exists.

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What's The Opportunity In Badger Infrastructure Solutions?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 9.4% below our intrinsic value, which means if you buy Badger Infrastructure Solutions today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth CA$77.54, then there isn’t much room for the share price grow beyond what it’s currently trading. Furthermore, Badger Infrastructure Solutions’s low beta implies that the stock is less volatile than the wider market.

See our latest analysis for Badger Infrastructure Solutions

Can we expect growth from Badger Infrastructure Solutions?

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. Badger Infrastructure Solutions' earnings over the next few years are expected to increase by 61%, 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? BDGI’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 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 BDGI, 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.

In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. At Simply Wall St, we found 1 warning sign for Badger Infrastructure Solutions and we think they deserve your attention.

If you are no longer interested in Badger Infrastructure Solutions, 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.