Is Now The Time To Look At 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 €16.52 at one point, and dropping to the lows of €14.26. 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 €14.34 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.

Check out our latest analysis for Bénéteau

What's The Opportunity In Bénéteau?

According to my valuation model, Bénéteau seems to be fairly priced at around 1.9% below my intrinsic value, which means if you buy Bénéteau today, you’d be paying a reasonable price for it. And if you believe the company’s true value is €14.61, then there isn’t much room for the share price grow beyond what it’s currently trading. Furthermore, Bénéteau’s low beta implies that the stock is less volatile than the wider market.

What does the future of Bénéteau look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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 59% over the next couple of years, the future seems bright for Bénéteau. 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? It seems like the market has already priced in BEN’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on BEN, now may not be the most advantageous 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 further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. For example, Bénéteau has 2 warning signs (and 1 which can't be ignored) we think you should know about.

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.