Is It Time To Consider Buying Bénéteau S.A. (EPA:BEN)?

Bénéteau S.A. (EPA:BEN), is not the largest company out there, but it received a lot of attention from a substantial price movement on the ENXTPA over the last few months, increasing to €15.10 at one point, and dropping to the lows of €11.02. 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 Bénéteau's current trading price of €11.90 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 Bénéteau’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 Bénéteau

What Is Bénéteau Worth?

Good news, investors! Bénéteau is still a bargain right now. My valuation model shows that the intrinsic value for the stock is €16.40, but it is currently trading at €11.90 on the share market, meaning that there is still an opportunity to buy now. Bénéteau’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.

What kind of growth will Bénéteau generate?

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 -1.3% expected over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for Bénéteau. This certainty tips the risk-return scale towards higher risk.

What This Means For You

Are you a shareholder? Although BEN is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. Consider whether you want to increase your portfolio exposure to BEN, 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 tabs on BEN for some time, but hesitant on making the leap, I 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. For example, we've found that Bénéteau has 2 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.

If you are no longer interested in Bénéteau, 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.