Is Now An Opportune Moment To Examine Tyman plc (LON:TYMN)?

Tyman plc (LON:TYMN), might not be a large cap stock, but it saw significant share price movement during recent months on the LSE, rising to highs of UK£3.07 and falling to the lows of UK£2.30. 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 Tyman's current trading price of UK£2.30 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 Tyman’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 Tyman

Is Tyman Still Cheap?

According to my price multiple model, which makes a comparison between the company's price-to-earnings ratio and the industry average, the stock price seems to be justfied. In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that Tyman’s ratio of 8.6x is trading slightly below its industry peers’ ratio of 10.88x, which means if you buy Tyman today, you’d be paying a reasonable price for it. And if you believe Tyman should be trading in this range, then there isn’t much room for the share price to grow beyond the levels of other industry peers over the long-term. Is there another opportunity to buy low in the future? Since Tyman’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. 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.

Can we expect growth from Tyman?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. However, with a relatively muted profit growth of 0.2% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Tyman, at least in the short term.

What This Means For You

Are you a shareholder? TYMN’s future growth appears to have been factored into the current share price, with shares trading around industry price multiples. 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 TYMN? Will you have enough conviction to buy should the price fluctuate below the industry PE ratio?

Are you a potential investor? If you’ve been keeping tabs on TYMN, now may not be the most optimal time to buy, given it is trading around industry price multiples. However, the positive growth outlook may mean 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 Tyman as a business, it's important to be aware of any risks it's facing. You'd be interested to know, that we found 1 warning sign for Tyman and you'll want to know about it.

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

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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.