Is Now The Time To Look At Buying Hapag-Lloyd Aktiengesellschaft (ETR:HLAG)?

Today we're going to take a look at the well-established Hapag-Lloyd Aktiengesellschaft (ETR:HLAG). The company's stock led the XTRA gainers with a relatively large price hike in the past couple of weeks. 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 large-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, could the stock still be trading at a relatively cheap price? Today we will analyse the most recent data on Hapag-Lloyd’s outlook and valuation to see if the opportunity still exists.

View our latest analysis for Hapag-Lloyd

Is Hapag-Lloyd Still Cheap?

According to our valuation model, the stock is currently overvalued by about 30%, trading at €154 compared to our intrinsic value of €118.66. Not the best news for investors looking to buy! But, is there another opportunity to buy low in the future? Given that Hapag-Lloyd’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.

Can we expect growth from Hapag-Lloyd?

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. However, with an extremely negative double-digit change in profit expected over the next couple of years, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for Hapag-Lloyd, at least in the near future.

What This Means For You

Are you a shareholder? If you believe HLAG should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. Given the risk from a negative growth outlook, this could be the right time to de-risk your portfolio. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping tabs on HLAG for some time, now may not be the best time to enter into the stock. The company’s price has climbed passed its true value, in addition to a risky future outlook. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Should the price fall in the future, will you be well-informed enough to buy?

If you want to dive deeper into Hapag-Lloyd, you'd also look into what risks it is currently facing. For instance, we've identified 4 warning signs for Hapag-Lloyd (3 can't be ignored) you should be familiar with.

If you are no longer interested in Hapag-Lloyd, 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.