At CN¥26.69, Is Macmic Science&Technology Co.,Ltd. (SHSE:688711) Worth Looking At Closely?

Macmic Science&Technology Co.,Ltd. (SHSE:688711), might not be a large cap stock, but it saw a double-digit share price rise of over 10% in the past couple of months on the SHSE. 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 stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s examine Macmic Science&TechnologyLtd’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

View our latest analysis for Macmic Science&TechnologyLtd

Is Macmic Science&TechnologyLtd Still Cheap?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 15% below our intrinsic value, which means if you buy Macmic Science&TechnologyLtd today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth CN¥31.56, then there isn’t much room for the share price grow beyond what it’s currently trading. In addition to this, Macmic Science&TechnologyLtd has a low beta, which suggests its share price is less volatile than the wider market.

Can we expect growth from Macmic Science&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. 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. Macmic Science&TechnologyLtd'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? 688711’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on 688711, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

It can be quite valuable to consider what analysts expect for Macmic Science&TechnologyLtd from their most recent forecasts. So feel free to check out our free graph representing analyst forecasts.

If you are no longer interested in Macmic 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.