Should You Think About Buying Jiangsu Hengli Hydraulic Co.,Ltd (SHSE:601100) Now?

While Jiangsu Hengli Hydraulic Co.,Ltd (SHSE:601100) might not have the largest market cap around , it saw significant share price movement during recent months on the SHSE, rising to highs of CN¥68.89 and falling to the lows of CN¥50.46. 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 Jiangsu Hengli HydraulicLtd's current trading price of CN¥53.44 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Jiangsu Hengli HydraulicLtd’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for Jiangsu Hengli HydraulicLtd

What Is Jiangsu Hengli HydraulicLtd Worth?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 11% below our intrinsic value, which means if you buy Jiangsu Hengli HydraulicLtd today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth CN¥59.91, then there isn’t much room for the share price grow beyond what it’s currently trading. Furthermore, Jiangsu Hengli HydraulicLtd’s low beta implies that the stock is less volatile than the wider market.

What kind of growth will Jiangsu Hengli HydraulicLtd 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. 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 63% over the next couple of years, the future seems bright for Jiangsu Hengli HydraulicLtd. 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? 601100’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 confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping tabs on 601100, now may not be the most optimal 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'd like to know more about Jiangsu Hengli HydraulicLtd as a business, it's important to be aware of any risks it's facing. Every company has risks, and we've spotted 2 warning signs for Jiangsu Hengli HydraulicLtd (of which 1 makes us a bit uncomfortable!) you should know about.

If you are no longer interested in Jiangsu Hengli HydraulicLtd, 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.