Is Now The Time To Look At Buying Fiskars Oyj Abp (HEL:FSKRS)?

Fiskars Oyj Abp (HEL:FSKRS), might not be a large cap stock, but it led the HLSE gainers with a relatively large price hike in the past couple of weeks. As a small cap stock, which tends to lack high analyst coverage, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let’s take a look at Fiskars Oyj Abp’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for Fiskars Oyj Abp

Is Fiskars Oyj Abp Still Cheap?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 3.8% below my intrinsic value, which means if you buy Fiskars Oyj Abp today, you’d be paying a reasonable price for it. And if you believe the company’s true value is €17.46, then there’s not much of an upside to gain from mispricing. What's more, Fiskars Oyj Abp’s share price may be more stable over time (relative to the market), as indicated by its low beta.

What kind of growth will Fiskars Oyj Abp generate?

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. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 83% over the next couple of years, the future seems bright for Fiskars Oyj Abp. 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? FSKRS’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 tabs on FSKRS, 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.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. For example, Fiskars Oyj Abp has 2 warning signs (and 1 which is potentially serious) we think you should know about.

If you are no longer interested in Fiskars Oyj Abp, 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.