When Should You Buy Nicolás Correa, S.A. (BME:NEA)?

Nicolás Correa, S.A. (BME:NEA), might not be a large cap stock, but it received a lot of attention from a substantial price movement on the BME over the last few months, increasing to €5.18 at one point, and dropping to the lows of €4.63. 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 Nicolás Correa's current trading price of €4.84 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 Nicolás Correa’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for Nicolás Correa

What is Nicolás Correa worth?

Great news for investors – Nicolás Correa is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is €7.04, but it is currently trading at €4.84 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Nicolás Correa’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. 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.

Can we expect growth from Nicolás Correa?

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. With profit expected to grow by 37% over the next couple of years, the future seems bright for Nicolás Correa. 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 NEA is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic 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 NEA for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy NEA. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.

If you want to dive deeper into Nicolás Correa, you'd also look into what risks it is currently facing. In terms of investment risks, we've identified 2 warning signs with Nicolás Correa, and understanding them should be part of your investment process.

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This article by Simply Wall St is general in nature. 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.
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