At €146, Is It Time To Put Samse SA (EPA:SAMS) On Your Watch List?

Samse SA (EPA:SAMS), is not the largest company out there, but it saw significant share price movement during recent months on the ENXTPA, rising to highs of €160 and falling to the lows of €134. 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 Samse's current trading price of €146 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 Samse’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 Samse

Is Samse still cheap?

According to my valuation model, Samse seems to be fairly priced at around 16.55% above my intrinsic value, which means if you buy Samse today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth €125.27, then there isn’t really any room for the share price grow beyond what it’s currently trading. What's more, Samse’s share price may be more stable over time (relative to the market), as indicated by its low beta.

Can we expect growth from Samse?

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 33% over the next couple of years, the future seems bright for Samse. 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 SAMS’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 confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on SAMS, 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.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. At Simply Wall St, we found 1 warning sign for Samse and we think they deserve your attention.

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

When trading Samse or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.