Is It Too Late To Consider Buying Beijing Easpring Material Technology CO.,LTD. (SZSE:300073)?

Beijing Easpring Material Technology CO.,LTD. (SZSE:300073), is not the largest company out there, but it received a lot of attention from a substantial price increase on the SZSE over the last few months. While good news for shareholders, the company has traded much higher in the past year. 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 examine Beijing Easpring Material TechnologyLTD’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

View our latest analysis for Beijing Easpring Material TechnologyLTD

Is Beijing Easpring Material TechnologyLTD Still Cheap?

Great news for investors – Beijing Easpring Material TechnologyLTD is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is CN¥56.57, but it is currently trading at CN¥40.36 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Beijing Easpring Material TechnologyLTD’s share price is theoretically quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.

Can we expect growth from Beijing Easpring Material TechnologyLTD?

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. Though in the case of Beijing Easpring Material TechnologyLTD, it is expected to deliver a relatively unexciting earnings growth of 5.4%, 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? Even though growth is relatively muted, since 300073 is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on 300073 for a while, now might be the time to make a leap. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy 300073. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. Case in point: We've spotted 2 warning signs for Beijing Easpring Material TechnologyLTD you should be mindful of and 1 of them can't be ignored.

If you are no longer interested in Beijing Easpring Material TechnologyLTD, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.