Is Prosegur (BME:PSG) Undervalued After Its Recent 9% Share Price Gain?

Prosegur Compañía de Seguridad (BME:PSG) stock remains on the radar after recent movements in performance. Over the past month, shares have risen by 9%, which may suggest renewed investor interest in this security services provider.

See our latest analysis for Prosegur Compañía de Seguridad.

The recent 9% gain in Prosegur Compañía de Seguridad’s share price has turned some heads, especially against a relatively modest yearly share price return and a similar one-year total shareholder return. This signals that momentum may be building as investors re-evaluate the company’s growth prospects and risk profile in light of recent developments.

If you’re interested in spotting the next potential mover, now could be the perfect time to widen your search and discover fast growing stocks with high insider ownership

With the recent upswing in share price and solid financial growth, the key question is whether Prosegur Compañía de Seguridad is trading below its intrinsic value or if the market has already factored in its future potential. Is there a buying opportunity, or is the optimism already included in the current price?

Most Popular Narrative: 10.4% Undervalued

With Prosegur Compañía de Seguridad’s most-followed narrative placing fair value at €3.18, recent momentum leaves the last close price of €2.85 looking attractively positioned. Bridging this gap depends on how the company's global expansion story and digital transformation are reflected in its results.

Expansion in the U.S. and APAC regions, where both security and cash businesses are growing at above-average rates, positions Prosegur to capitalize on rising urbanization and asset concentration in high-growth markets. This supports future revenue growth and geographic diversification. Increasing share of technology-enabled services (notably in Security and Alarm businesses, where high-end tech solutions and connections exceeded 1 million) leverages the industry shift toward digital, integrated security. This is expected to drive higher-margin offerings and improved net margins over time.

Read the complete narrative.

Curious how much Prosegur’s bet on recurring revenues and margin expansion could move the needle? The blueprint behind this valuation depends not just on steady growth, but on transformative profit assumptions and a bold re-rating of earnings power. Discover the financial leap the narrative projects and see if the digital shift is big enough to deliver.

Result: Fair Value of €3.18 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent currency volatility and the continued global shift toward cashless economies could quickly challenge Prosegur’s growth story if these factors are not carefully managed.

Find out about the key risks to this Prosegur Compañía de Seguridad narrative.

Build Your Own Prosegur Compañía de Seguridad Narrative

If these insights spark a different perspective or you’d like to dive into the numbers yourself, you can craft your take in just a few minutes. Do it your way

A great starting point for your Prosegur Compañía de Seguridad research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

Don’t sit on the sidelines and miss the market’s best opportunities. Use the Simply Wall Street Screener to zero in on stocks that fit your strategy perfectly.

• Supercharge your portfolio with potential high-yield opportunities by checking out these 19 dividend stocks with yields > 3%, delivering yields above 3%.
• Ride the latest wave in artificial intelligence by following these 24 AI penny stocks, tapping into sector-defining breakthroughs and future growth.
• Get ahead of the crowd and unlock hidden value with these 904 undervalued stocks based on cash flows, based on robust cash flow fundamentals.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com