Should You Investigate Vertex Resource Group Ltd. (CVE:VTX) At CA$0.41?

While Vertex Resource Group Ltd. (CVE:VTX) might not be the most widely known stock at the moment, it saw a double-digit share price rise of over 10% in the past couple of months on the TSXV. 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 Vertex Resource Group’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for Vertex Resource Group

What's The Opportunity In Vertex Resource Group?

Good news, investors! Vertex Resource Group is still a bargain right now. According to my valuation, the intrinsic value for the stock is CA$0.66, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, Vertex Resource Group’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

Can we expect growth from Vertex Resource Group?

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 revenues expected to grow by a double-digit 15% in the upcoming year, the outlook is positive for Vertex Resource Group. If the level of expenses is able to be maintained, 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? Since VTX is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on VTX for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy VTX. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.

If you want to dive deeper into Vertex Resource Group, you'd also look into what risks it is currently facing. Every company has risks, and we've spotted 3 warning signs for Vertex Resource Group (of which 1 is a bit unpleasant!) you should know about.

If you are no longer interested in Vertex Resource Group, 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.