What Is Konica Minolta, Inc.'s (TSE:4902) Share Price Doing?

While Konica Minolta, Inc. (TSE:4902) might not have the largest market cap around , it saw significant share price movement during recent months on the TSE, rising to highs of JP¥704 and falling to the lows of JP¥524. 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 Konica Minolta's current trading price of JP¥546 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 Konica Minolta’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for Konica Minolta

Is Konica Minolta Still Cheap?

According to our valuation model, Konica Minolta seems to be fairly priced at around 10.36% above our intrinsic value, which means if you buy Konica Minolta today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is ¥494.55, there’s only an insignificant downside when the price falls to its real value. Furthermore, Konica Minolta’s low beta implies that the stock is less volatile than the wider market.

What kind of growth will Konica Minolta 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. 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. However, with an expected decline of -6.7% in revenues over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for Konica Minolta. This certainty tips the risk-return scale towards higher risk.

What This Means For You

Are you a shareholder? Currently, 4902 appears to be trading around its fair value, but given the uncertainty from negative returns in the future, this could be the right time to de-risk your portfolio. Is your current exposure to the stock beneficial for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping tabs on 4902 for a while, now may not be the most advantageous time to buy, given it is trading around its fair value. The price seems to be trading at fair value, which means there’s less benefit from mispricing. Furthermore, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help gel your views on 4902 should the price fluctuate below its true value.

If you want to dive deeper into Konica Minolta, you'd also look into what risks it is currently facing. While conducting our analysis, we found that Konica Minolta has 1 warning sign and it would be unwise to ignore this.

If you are no longer interested in Konica Minolta, 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.