Stock Analysis

At €2.29, Is It Time To Put GROUPE SFPI SA (EPA:SFPI) On Your Watch List?

  •  Updated
ENXTPA:SFPI
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GROUPE SFPI SA (EPA:SFPI), might not be a large cap stock, but it received a lot of attention from a substantial price movement on the ENXTPA over the last few months, increasing to €2.76 at one point, and dropping to the lows of €2.29. 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 GROUPE SFPI's current trading price of €2.29 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 GROUPE SFPI’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 GROUPE SFPI

Is GROUPE SFPI Still Cheap?

According to my valuation model, the stock is currently overvalued by about 38%, trading at €2.29 compared to my intrinsic value of €1.66. Not the best news for investors looking to buy! But, is there another opportunity to buy low in the future? Since GROUPE SFPI’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What kind of growth will GROUPE SFPI generate?

earnings-and-revenue-growth
ENXTPA:SFPI Earnings and Revenue Growth September 24th 2022

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. GROUPE SFPI's earnings over the next few years are expected to increase by 22%, 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? It seems like the market has well and truly priced in SFPI’s positive outlook, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe SFPI should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping tabs on SFPI for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the optimistic prospect is encouraging for SFPI, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

If you'd like to know more about GROUPE SFPI as a business, it's important to be aware of any risks it's facing. You'd be interested to know, that we found 2 warning signs for GROUPE SFPI and you'll want to know about them.

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

Valuation is complex, but we're helping make it simple.

Find out whether GROUPE SFPI 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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About ENXTPA:SFPI

GROUPE SFPI

GROUPE SFPI SA designs, manufactures, and markets equipment for the safety industry in Europe and internationally.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation3
Future Growth0
Past Performance2
Financial Health5
Dividends3

Read more about these checks in the individual report sections or in our analysis model.

Excellent balance sheet and fair value.