Stock Analysis

At €532, Is It Time To Put Kering SA (EPA:KER) On Your Watch List?

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ENXTPA:KER
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Today we're going to take a look at the well-established Kering SA (EPA:KER). The company's stock led the ENXTPA gainers with a relatively large price hike in the past couple of weeks. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s take a look at Kering’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for Kering

Is Kering Still Cheap?

According to my valuation model, Kering seems to be fairly priced at around 10% below my intrinsic value, which means if you buy Kering today, you’d be paying a reasonable price for it. And if you believe the company’s true value is €591.76, then there isn’t much room for the share price grow beyond what it’s currently trading. What's more, Kering’s share price may be more stable over time (relative to the market), as indicated by its low beta.

Can we expect growth from Kering?

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ENXTPA:KER Earnings and Revenue Growth November 11th 2022

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. Kering's earnings over the next few years are expected to increase by 28%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? KER’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 conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on KER, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook 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.

In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. In terms of investment risks, we've identified 1 warning sign with Kering, and understanding it should be part of your investment process.

If you are no longer interested in Kering, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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Find out whether Kering is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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