Is There Now An Opportunity In Redcare Pharmacy NV (ETR:RDC)?

Redcare Pharmacy NV (ETR:RDC), is not the largest company out there, but it received a lot of attention from a substantial price movement on the XTRA over the last few months, increasing to €152 at one point, and dropping to the lows of €121. 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 Redcare Pharmacy's current trading price of €129 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Redcare Pharmacy’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for Redcare Pharmacy

What's The Opportunity In Redcare Pharmacy?

Good news, investors! Redcare Pharmacy is still a bargain right now. Our valuation model shows that the intrinsic value for the stock is €201.04, but it is currently trading at €129 on the share market, meaning that there is still an opportunity to buy now. However, given that Redcare Pharmacy’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What does the future of Redcare Pharmacy 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. With profit expected to grow by 44% over the next year, the near-term future seems bright for Redcare Pharmacy. 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 RDC is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive 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 undervaluation.

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

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. At Simply Wall St, we found 1 warning sign for Redcare Pharmacy and we think they deserve your attention.

If you are no longer interested in Redcare Pharmacy, 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.