Is It Time To Consider Buying APG|SGA SA (VTX:APGN)?

APG|SGA SA (VTX:APGN), is not the largest company out there, but it saw a double-digit share price rise of over 10% in the past couple of months on the SWX. Less-covered, small caps sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Today I will analyse the most recent data on APG|SGA’s outlook and valuation to see if the opportunity still exists.

Check out our latest analysis for APG|SGA

Is APG|SGA still cheap?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 6.89% above my intrinsic value, which means if you buy APG|SGA today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth CHF177.75, there’s only an insignificant downside when the price falls to its real value. What's more, APG|SGA’s share price may be more stable over time (relative to the market), as indicated by its low beta.

Can we expect growth from APG|SGA?

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 APG|SGA, it is expected to deliver a relatively unexciting top-line growth of 9.7% 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? It seems like the market has already priced in APGN’s future outlook, 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 APGN, now may not be the most advantageous 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 while earnings quality is important, it's equally important to consider the risks facing APG|SGA at this point in time. To help with this, we've discovered 3 warning signs (1 is a bit unpleasant!) that you ought to be aware of before buying any shares in APG|SGA.

If you are no longer interested in APG|SGA, 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. 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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