Stock Analysis

Should You Think About Buying Suzhou Shijing Environmental Technology Co.,Ltd. (SZSE:301030) Now?

SZSE:301030
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While Suzhou Shijing Environmental Technology Co.,Ltd. (SZSE:301030) might not have the largest market cap around , it received a lot of attention from a substantial price increase on the SZSE over the last few months. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. Less-covered, small caps tend to present 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? Let’s examine Suzhou Shijing Environmental TechnologyLtd’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

See our latest analysis for Suzhou Shijing Environmental TechnologyLtd

What Is Suzhou Shijing Environmental TechnologyLtd Worth?

Good news, investors! Suzhou Shijing Environmental TechnologyLtd is still a bargain right now according to our price multiple model, which compares the company's price-to-earnings ratio to the industry average. In this instance, we’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. we find that Suzhou Shijing Environmental TechnologyLtd’s ratio of 24.74x is below its peer average of 31.8x, which indicates the stock is trading at a lower price compared to the Machinery industry. Another thing to keep in mind is that Suzhou Shijing Environmental TechnologyLtd’s share price is quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its industry peers, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.

Can we expect growth from Suzhou Shijing Environmental TechnologyLtd?

earnings-and-revenue-growth
SZSE:301030 Earnings and Revenue Growth October 23rd 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. 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. With profit expected to more than double over the next couple of years, the future seems bright for Suzhou Shijing Environmental TechnologyLtd. 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? Since 301030 is currently trading below the industry PE ratio, it may be a great time to accumulate more of your holdings in the stock. With a positive profit outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current price multiple.

Are you a potential investor? If you’ve been keeping an eye on 301030 for a while, now might be the time to make a leap. Its prosperous future profit outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy 301030. 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 assessment.

If you want to dive deeper into Suzhou Shijing Environmental TechnologyLtd, you'd also look into what risks it is currently facing. Every company has risks, and we've spotted 4 warning signs for Suzhou Shijing Environmental TechnologyLtd (of which 2 are a bit concerning!) you should know about.

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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.