Stock Analysis

At CHF1,566, Is It Time To Put Schweiter Technologies AG (VTX:SWTQ) On Your Watch List?

SWX:SWTQ
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While Schweiter Technologies AG (VTX:SWTQ) might not be the most widely known stock at the moment, it saw a significant share price rise of over 20% in the past couple of months on the SWX. 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. However, could the stock still be trading at a relatively cheap price? Let’s examine Schweiter Technologies’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

Check out our latest analysis for Schweiter Technologies

What is Schweiter Technologies worth?

The stock is currently trading at CHF1,566 on the share market, which means it is overvalued by 37% compared to my intrinsic value of CHF1143.39. This means that the opportunity to buy Schweiter Technologies at a good price has disappeared! Furthermore, Schweiter Technologies’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 does the future of Schweiter Technologies look like?

earnings-and-revenue-growth
SWX:SWTQ Earnings and Revenue Growth January 22nd 2021

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 36% over the next couple of years, the future seems bright for Schweiter Technologies. It looks like higher cash flow 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 SWTQ’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 SWTQ 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 SWTQ 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 SWTQ, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

It can be quite valuable to consider what analysts expect for Schweiter Technologies from their most recent forecasts. Luckily, you can check out what analysts are forecasting by clicking here.

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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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