Is Now The Time To Look At Buying Hamburger Hafen und Logistik Aktiengesellschaft (ETR:HHFA)?

Hamburger Hafen und Logistik Aktiengesellschaft (ETR:HHFA), 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 €21.44 at one point, and dropping to the lows of €18.61. 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 Hamburger Hafen und Logistik's current trading price of €18.61 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 Hamburger Hafen und Logistik’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for Hamburger Hafen und Logistik

What is Hamburger Hafen und Logistik worth?

The share price seems sensible at the moment according to my price multiple model, where I compare the company's price-to-earnings ratio to the industry average. In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that Hamburger Hafen und Logistik’s ratio of 16.33x is trading slightly above its industry peers’ ratio of 13.46x, which means if you buy Hamburger Hafen und Logistik today, you’d be paying a relatively sensible price for it. And if you believe Hamburger Hafen und Logistik should be trading in this range, then there isn’t really any room for the share price grow beyond the levels of other industry peers over the long-term. Is there another opportunity to buy low in the future? Since Hamburger Hafen und Logistik’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What does the future of Hamburger Hafen und Logistik 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. 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. Hamburger Hafen und Logistik's earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? HHFA’s optimistic future growth appears to have been factored into the current share price, with shares trading around industry price multiples. 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 HHFA? Will you have enough conviction to buy should the price fluctuate below the industry PE ratio?

Are you a potential investor? If you’ve been keeping tabs on HHFA, now may not be the most optimal time to buy, given it is trading around industry price multiples. However, the positive outlook is encouraging for HHFA, 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.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. In terms of investment risks, we've identified 3 warning signs with Hamburger Hafen und Logistik, and understanding these should be part of your investment process.

If you are no longer interested in Hamburger Hafen und Logistik, 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.