What Is ID Logistics Group SA's (EPA:IDL) Share Price Doing?

While ID Logistics Group SA (EPA:IDL) might not have the largest market cap around , it received a lot of attention from a substantial price movement on the ENXTPA over the last few months, increasing to €465 at one point, and dropping to the lows of €371. 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 ID Logistics Group's current trading price of €404 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at ID Logistics Group’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 ID Logistics Group

What's The Opportunity In ID Logistics Group?

ID Logistics Group appears to be expensive according to our price multiple model, which makes a comparison between the company's price-to-earnings ratio and the industry average. In this instance, we’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. We find that ID Logistics Group’s ratio of 49.71x is above its peer average of 14.96x, which suggests the stock is trading at a higher price compared to the Logistics industry. Another thing to keep in mind is that ID Logistics Group’s share price is quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards the levels of its industry peers over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard for it to fall back down into an attractive buying range again.

What does the future of ID Logistics Group 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. ID Logistics Group's earnings over the next few years are expected to increase by 46%, 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? IDL’s optimistic future growth appears to have been factored into the current share price, with shares trading above industry price multiples. However, this brings up another question – is now the right time to sell? If you believe IDL should trade below its current price, selling high and buying it back up again when its price falls towards the industry PE ratio 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 an eye on IDL for a while, now may not be the best time to enter into the stock. The price has surpassed its industry peers, which means it is likely that there is no more upside from mispricing. However, the positive outlook is encouraging for IDL, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

If you want to dive deeper into ID Logistics Group, you'd also look into what risks it is currently facing. Every company has risks, and we've spotted 2 warning signs for ID Logistics Group (of which 1 doesn't sit too well with us!) you should know about.

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

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

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.