Is There Now An Opportunity In Taiheiyo Cement Corporation (TSE:5233)?

Taiheiyo Cement Corporation (TSE:5233), is not the largest company out there, but it received a lot of attention from a substantial price increase on the TSE over the last few months. The company's trading levels have reached its high for the past year, following the recent bounce in the share price. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s take a look at Taiheiyo Cement’s outlook and value based on the most recent financial data to see if the opportunity still exists.

View our latest analysis for Taiheiyo Cement

Is Taiheiyo Cement Still Cheap?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 8.0% below our intrinsic value, which means if you buy Taiheiyo Cement today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth ¥3856.76, then there isn’t much room for the share price grow beyond what it’s currently trading. In addition to this, Taiheiyo Cement has a low beta, which suggests its share price is less volatile than the wider market.

What does the future of Taiheiyo Cement 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. Taiheiyo Cement's earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? It seems like the market has already priced in 5233’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 5233, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you want to dive deeper into Taiheiyo Cement, you'd also look into what risks it is currently facing. Be aware that Taiheiyo Cement is showing 3 warning signs in our investment analysis and 2 of those are a bit concerning...

If you are no longer interested in Taiheiyo Cement, 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.