While Gel S.p.A. (BIT:GEL) might not have the largest market cap around , it saw a decent share price growth of 18% on the BIT over the last few months. The recent share price gains has brought the company back closer to its yearly peak. Less-covered, small caps sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Let’s take a look at Gel’s outlook and value based on the most recent financial data to see if the opportunity still exists.
View our latest analysis for Gel
What Is Gel Worth?
Good news, investors! Gel is still a bargain right now. According to our valuation, the intrinsic value for the stock is €1.93, but it is currently trading at €1.53 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Gel’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. 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 Gel 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. However, with a relatively muted revenue growth of 5.0% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Gel, at least in the short term.
What This Means For You
Are you a shareholder? Even though growth is relatively muted, since GEL is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on GEL for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy GEL. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.
If you want to dive deeper into Gel, you'd also look into what risks it is currently facing. Case in point: We've spotted 2 warning signs for Gel you should be aware of.
If you are no longer interested in Gel, 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.
About BIT:GEL
Gel
Engages in the design, manufacture, and sale of water treatment products in Italy.
Solid track record with excellent balance sheet.
