While Georg Fischer AG (VTX:FI-N) might not be the most widely known stock at the moment, it saw a decent share price growth in the teens level on the SWX over the last few months. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s take a look at Georg Fischer’s outlook and value based on the most recent financial data to see if the opportunity still exists.
View our latest analysis for Georg Fischer
What is Georg Fischer worth?
According to my valuation model, Georg Fischer seems to be fairly priced at around 5.1% below my intrinsic value, which means if you buy Georg Fischer today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth CHF1347.39, then there’s not much of an upside to gain from mispricing. Is there another opportunity to buy low in the future? Since Georg Fischer’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. 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.
What kind of growth will Georg Fischer 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. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Georg Fischer's earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? FI-N’s optimistic 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 track record of its management team. 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 FI-N, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
If you want to dive deeper into Georg Fischer, you'd also look into what risks it is currently facing. In terms of investment risks, we've identified 1 warning sign with Georg Fischer, and understanding it should be part of your investment process.
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This article by Simply Wall St is general in nature. 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.
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About SWX:GF
Georg Fischer
Engages in the provision of piping systems, and casting and machining solutions in Europe, the Americas, Asia, and internationally.
Good value average dividend payer.
