Lassonde Industries Inc (TSX:LAS.A), a food company based in Canada, saw significant share price volatility over the past couple of months on the TSX, rising to the highs of CA$268.88 and falling to the lows of CA$240.02. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Lassonde Industries’s current trading price of CA$255 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Lassonde Industries’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for Lassonde Industries
Is Lassonde Industries still cheap?Good news, investors! Lassonde Industries is still a bargain right now. According to my valuation, the intrinsic value for the stock is CA$363.73, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Lassonde Industries’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.
What kind of growth will Lassonde Industries generate?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. Though in the case of Lassonde Industries, it is expected to deliver a relatively unexciting top-line growth of 4.83% in the next few years, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.
What this means for you:
Are you a shareholder? Even though growth is relatively muted, since LAS.A is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. 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 LAS.A for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy LAS.A. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Lassonde Industries. You can find everything you need to know about Lassonde Industries in the latest infographic research report. If you are no longer interested in Lassonde Industries, you can use our free platform to see my list of over 50 other stocks with a high growth potential.