4imprint Group plc (LON:FOUR), might not be a large cap stock, but it saw a decent share price growth of 13% on the LSE over the last few months. The recent share price gains has brought the company back closer to its yearly peak. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Today we will analyse the most recent data on 4imprint Group’s outlook and valuation to see if the opportunity still exists.
See our latest analysis for 4imprint Group
Is 4imprint Group Still Cheap?
Great news for investors – 4imprint Group is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is £82.12, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, 4imprint Group’s share price is theoretically 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 kind of growth will 4imprint Group generate?
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. With profit expected to grow by 24% over the next couple of years, the future seems bright for 4imprint Group. 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? Since FOUR is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic 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 FOUR for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy FOUR. 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.
It can be quite valuable to consider what analysts expect for 4imprint Group from their most recent forecasts. Luckily, you can check out what analysts are forecasting by clicking here.
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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.
About LSE:FOUR
4imprint Group
Operates as a direct marketer of promotional products in North America, the United Kingdom, and Ireland.
Flawless balance sheet established dividend payer.