Streamwide SA. (ENXTPA:ALSTW), a software company based in France, received a lot of attention from a substantial price movement on the ENXTPA over the last few months, increasing to €6.6 at one point, and dropping to the lows of €5.85. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Streamwide’s current trading price of €5.85 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 Streamwide’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 Streamwide
What’s the opportunity in Streamwide?Great news for investors – Streamwide is still trading at a fairly cheap price. I’ve used the price-to-book ratio in this instance because there’s not enough visibility to forecast its cash flows, and its earnings doesn’t seem to reflect its true value. The stock’s ratio of 1.33x is currently well-below the industry average of 4.09x, meaning that it is trading at a cheaper price relative to its peers. What’s more interesting is that, Streamwide’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.
What does the future of Streamwide look like?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. 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. Streamwide’s earnings over the next few years are expected to increase by 75.09%, 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? Since ALSTW is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on ALSTW for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ALSTW. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Streamwide. You can find everything you need to know about Streamwide in the latest infographic research report. If you are no longer interested in Streamwide, you can use our free platform to see my list of over 50 other stocks with a high growth potential.