At UK£0.027, Is Crimson Tide plc (LON:TIDE) Worth Looking At Closely?

While Crimson Tide plc (LON:TIDE) might not be the most widely known stock at the moment, it received a lot of attention from a substantial price movement on the AIM over the last few months, increasing to UK£0.033 at one point, and dropping to the lows of UK£0.025. 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 Crimson Tide's current trading price of UK£0.027 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 Crimson Tide’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for Crimson Tide

What's The Opportunity In Crimson Tide?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 9.0% below my intrinsic value, which means if you buy Crimson Tide today, you’d be paying a fair price for it. And if you believe that the stock is really worth £0.03, then there’s not much of an upside to gain from mispricing. What's more, Crimson Tide’s share price may be more stable over time (relative to the market), as indicated by its low beta.

What does the future of Crimson Tide 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. 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. With profit expected to grow by 100% over the next year, the near-term future seems bright for Crimson Tide. 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? TIDE’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. 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 the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on TIDE, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you'd like to know more about Crimson Tide as a business, it's important to be aware of any risks it's facing. Case in point: We've spotted 1 warning sign for Crimson Tide you should be aware of.

If you are no longer interested in Crimson Tide, 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.