Is It Too Late To Consider Buying Trigano S.A. (EPA:TRI)?

Trigano S.A. (EPA:TRI), is not the largest company out there, but it saw a double-digit share price rise of over 10% in the past couple of months on the ENXTPA. While good news for shareholders, the company has traded much higher in the past year. As a mid-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, what if the stock is still a bargain? Today we will analyse the most recent data on Trigano’s outlook and valuation to see if the opportunity still exists.

View our latest analysis for Trigano

What's The Opportunity In Trigano?

Good news, investors! Trigano is still a bargain right now. Our valuation model shows that the intrinsic value for the stock is €179.80, but it is currently trading at €127 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Trigano’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.

What does the future of Trigano look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. However, with a negative profit growth of -5.5% expected over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for Trigano. This certainty tips the risk-return scale towards higher risk.

What This Means For You

Are you a shareholder? Although TRI is currently undervalued, the adverse prospect of negative growth brings about some degree of risk. We recommend you think about whether you want to increase your portfolio exposure to TRI, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you’ve been keeping an eye on TRI for a while, but hesitant on making the leap, we recommend you dig deeper into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. When we did our research, we found 3 warning signs for Trigano (2 make us uncomfortable!) that we believe deserve your full attention.

If you are no longer interested in Trigano, 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.