At €35.49, Is It Time To Put AIXTRON SE (ETR:AIXA) On Your Watch List?

AIXTRON SE (ETR:AIXA), is not the largest company out there, but it saw a significant share price rise of 36% in the past couple of months on the XTRA. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. As a mid-cap 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 AIXTRON’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

View our latest analysis for AIXTRON

What Is AIXTRON Worth?

According to our valuation model, AIXTRON seems to be fairly priced at around 12.69% above our intrinsic value, which means if you buy AIXTRON today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is €31.49, there’s only an insignificant downside when the price falls to its real value. 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?

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. AIXTRON's earnings over the next few years are expected to increase by 49%, 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? AIXA’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 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 an eye on AIXA, now may not be the most optimal 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.

With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. Case in point: We've spotted 1 warning sign for AIXTRON you should be aware of.

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.