Is Now The Time To Look At Buying Nanjing Xinjiekou Department Store Co., Ltd. (SHSE:600682)?

Nanjing Xinjiekou Department Store Co., Ltd. (SHSE:600682), is not the largest company out there, but it saw a decent share price growth of 12% on the SHSE 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. As a small cap stock, hardly covered by any analysts, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let’s take a look at Nanjing Xinjiekou Department Store’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for Nanjing Xinjiekou Department Store

What Is Nanjing Xinjiekou Department Store Worth?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 10.69% above our intrinsic value, which means if you buy Nanjing Xinjiekou Department Store today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is CN¥5.34, there’s only an insignificant downside when the price falls to its real value. What's more, Nanjing Xinjiekou Department Store’s share price may be more stable over time (relative to the market), as indicated by its low beta.

Can we expect growth from Nanjing Xinjiekou Department Store?

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 28% over the next couple of years, the future seems bright for Nanjing Xinjiekou Department Store. 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? It seems like the market has already priced in 600682’s positive 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 tabs on 600682, now may not be the most advantageous 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 diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Every company has risks, and we've spotted 1 warning sign for Nanjing Xinjiekou Department Store you should know about.

If you are no longer interested in Nanjing Xinjiekou Department Store, 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.