Stock Analysis

Is It Time To Consider Buying China International Marine Containers (Group) Co., Ltd. (SZSE:000039)?

Published
SZSE:000039

China International Marine Containers (Group) Co., Ltd. (SZSE:000039), is not the largest company out there, but it saw a decent share price growth of 18% on the SZSE over the last few months. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. 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, what if the stock is still a bargain? Let’s take a look at China International Marine Containers (Group)’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for China International Marine Containers (Group)

Is China International Marine Containers (Group) Still Cheap?

According to our valuation model, the stock is currently overvalued by about 39%, trading at CN¥8.08 compared to our intrinsic value of CN¥5.83. This means that the buying opportunity has probably disappeared for now. Furthermore, China International Marine Containers (Group)’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 kind of growth will China International Marine Containers (Group) generate?

SZSE:000039 Earnings and Revenue Growth December 10th 2024

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. China International Marine Containers (Group)'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? 000039’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe 000039 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 tabs on 000039 for some time, 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 000039, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

If you'd like to know more about China International Marine Containers (Group) as a business, it's important to be aware of any risks it's facing. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of China International Marine Containers (Group).

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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.