Tinexta S.p.A. (BIT:TNXT), might not be a large cap stock, but it received a lot of attention from a substantial price increase on the BIT over the last few months. With many analysts covering the 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 I will analyse the most recent data on Tinexta’s outlook and valuation to see if the opportunity still exists.
See our latest analysis for Tinexta
What's the opportunity in Tinexta?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 7.32% above my intrinsic value, which means if you buy Tinexta today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is €30.47, then there isn’t really any room for the share price grow beyond what it’s currently trading. Furthermore, Tinexta’s low beta implies that the stock is less volatile than the wider market.
What does the future of Tinexta 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. With profit expected to grow by 44% over the next couple of years, the future seems bright for Tinexta. 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? It seems like the market has already priced in TNXT’s positive outlook, 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 conviction to buy should the price fluctuates below the true value?
Are you a potential investor? If you’ve been keeping tabs on TNXT, now may not be the most optimal 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.
So while earnings quality is important, it's equally important to consider the risks facing Tinexta at this point in time. Every company has risks, and we've spotted 2 warning signs for Tinexta you should know about.
If you are no longer interested in Tinexta, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
If you’re looking to trade Tinexta, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted
Valuation is complex, but we're here to simplify it.
Discover if Tinexta might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Access Free AnalysisThis article by Simply Wall St is general in nature. 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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
About BIT:TNXT
Tinexta
Together its subsidiaries, provides digital trust, cybersecurity, and business innovation services for professionals, institutions, and businesses in Italy and internationally.
Moderate with reasonable growth potential and pays a dividend.