At €15.81, Is AIXTRON SE (ETR:AIXA) Worth Looking At Closely?

AIXTRON SE (ETR:AIXA), is not the largest company out there, but it received a lot of attention from a substantial price increase on the XTRA 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. 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 take a look at AIXTRON’s outlook and value based on the most recent financial data to see if the opportunity still exists.

View our latest analysis for AIXTRON

Is AIXTRON Still Cheap?

According to our valuation model, AIXTRON seems to be fairly priced at around 11% below our intrinsic value, which means if you buy AIXTRON today, you’d be paying a reasonable price for it. And if you believe the company’s true value is €17.82, then there isn’t much room for the share price grow beyond what it’s currently trading. What's more, AIXTRON’s share price may be more stable over time (relative to the market), as indicated by its low beta.

What does the future of AIXTRON look like?

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. Though in the case of AIXTRON, it is expected to deliver a relatively unexciting earnings growth of 7.3%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.

What This Means For You

Are you a shareholder? AIXA’s 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 financial strength of the company. 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 tabs on AIXA, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook 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 while earnings quality is important, it's equally important to consider the risks facing AIXTRON at this point in time. Our analysis shows 2 warning signs for AIXTRON (1 doesn't sit too well with us!) and we strongly recommend you look at these before investing.

If you are no longer interested in AIXTRON, 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.