At CHF413, Is It Time To Put Bucher Industries AG (VTX:BUCN) On Your Watch List?

Bucher Industries AG (VTX:BUCN), might not be a large cap stock, but it led the SWX gainers with a relatively large price hike in the past couple of weeks. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s examine Bucher Industries’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

See our latest analysis for Bucher Industries

Is Bucher Industries Still Cheap?

According to my valuation model, Bucher Industries seems to be fairly priced at around 1.76% above my intrinsic value, which means if you buy Bucher Industries today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is CHF405.84, then there isn’t really any room for the share price grow beyond what it’s currently trading. Furthermore, Bucher Industries’s low beta implies that the stock is less volatile than the wider market.

Can we expect growth from Bucher Industries?

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. However, with a relatively muted profit growth of 3.4% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Bucher Industries, at least in the short term.

What This Means For You

Are you a shareholder? BUCN’s 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 financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on BUCN, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. You'd be interested to know, that we found 1 warning sign for Bucher Industries and you'll want to know about it.

If you are no longer interested in Bucher Industries, 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.