Why Westshore Terminals Investment Corporation (TSE:WTE) Could Be Worth Watching

Westshore Terminals Investment Corporation (TSE:WTE), is not the largest company out there, but it received a lot of attention from a substantial price movement on the TSX over the last few months, increasing to CA$27.56 at one point, and dropping to the lows of CA$22.12. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Westshore Terminals Investment's current trading price of CA$23.88 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 Westshore Terminals Investment’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for Westshore Terminals Investment

Is Westshore Terminals Investment Still Cheap?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 18.47% above my intrinsic value, which means if you buy Westshore Terminals Investment today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is CA$20.16, there’s only an insignificant downside when the price falls to its real value. In addition to this, Westshore Terminals Investment has a low beta, which suggests its share price is less volatile than the wider market.

Can we expect growth from Westshore Terminals Investment?

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 Westshore Terminals Investment, it is expected to deliver a highly negative earnings growth in the next few years, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.

What This Means For You

Are you a shareholder? WTE seems fairly priced right now, but given the uncertainty from negative returns in the future, this could be the right time to de-risk your portfolio. Is your current exposure to the stock beneficial for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping an eye on WTE for a while, now may not be the most optimal time to buy, given it is trading around its fair value. The price seems to be trading at fair value, which means there’s less benefit from mispricing. In addition to this, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help gel your views on WTE should the price fluctuate below its true value.

If you want to dive deeper into Westshore Terminals Investment, you'd also look into what risks it is currently facing. Case in point: We've spotted 1 warning sign for Westshore Terminals Investment you should be aware of.

If you are no longer interested in Westshore Terminals Investment, 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.