Is It Too Late To Consider Buying Chengdu Guibao Science & Technology Co.,Ltd. (SZSE:300019)?

Chengdu Guibao Science & Technology Co.,Ltd. (SZSE:300019), is not the largest company out there, but it saw significant share price movement during recent months on the SZSE, rising to highs of CN¥13.96 and falling to the lows of CN¥10.16. 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 Chengdu Guibao Science & TechnologyLtd's current trading price of CN¥10.16 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Chengdu Guibao Science & TechnologyLtd’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 Chengdu Guibao Science & TechnologyLtd

Is Chengdu Guibao Science & TechnologyLtd Still Cheap?

Great news for investors – Chengdu Guibao Science & TechnologyLtd is still trading at a fairly cheap price according to our price multiple model, where we compare the company's price-to-earnings ratio to the industry average. We’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 13.23x is currently well-below the industry average of 25.82x, meaning that it is trading at a cheaper price relative to its peers. What’s more interesting is that, Chengdu Guibao Science & TechnologyLtd’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to move closer to its industry peers, 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.

What does the future of Chengdu Guibao Science & TechnologyLtd look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. Chengdu Guibao Science & TechnologyLtd's earnings over the next few years are expected to increase by 66%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since 300019 is currently trading below the industry PE ratio, it may be a great time to increase your holdings in the stock. With an optimistic 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 financial health to consider, which could explain the current price multiple.

Are you a potential investor? If you’ve been keeping an eye on 300019 for a while, now might be the time to make a leap. Its buoyant future profit outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy 300019. 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.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. You'd be interested to know, that we found 1 warning sign for Chengdu Guibao Science & TechnologyLtd and you'll want to know about this.

If you are no longer interested in Chengdu Guibao Science & TechnologyLtd, 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.