At $14.67, Is It Time To Buy Mullen Group Ltd (TSE:MTL)?

Mullen Group Ltd (TSX:MTL), an energy company based in Canada, maintained its current share price over the past couple of month on the TSX, with a relatively tight range of CA$14.21 to CA$15.55. However, does this price actually reflect the true value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Mullen Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. See our latest analysis for Mullen Group

Is Mullen Group still cheap?

The stock is currently trading at CA$14.67 on the share market, which means it is overvalued by 95% compared to my intrinsic value of CA$7.52. Not the best news for investors looking to buy! But, is there another opportunity to buy low in the future? Given that Mullen Group’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What does the future of Mullen Group look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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 94.41% over the next couple of years, the future seems bright for Mullen Group. It looks like higher cash flows 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 well and truly priced in MTL’s positive outlook, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe MTL should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping an eye on MTL for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook is encouraging for MTL, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Mullen Group. You can find everything you need to know about Mullen Group in the latest infographic research report. If you are no longer interested in Mullen Group, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.