At JP¥6,580, Is It Time To Put MITSUI-SOKO HOLDINGS Co., Ltd. (TSE:9302) On Your Watch List?

While MITSUI-SOKO HOLDINGS Co., Ltd. (TSE:9302) might not have the largest market cap around , it saw a significant share price rise of 44% in the past couple of months on the TSE. The company is inching closer to its yearly highs following the recent share price climb. 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 we will analyse the most recent data on MITSUI-SOKO HOLDINGS’s outlook and valuation to see if the opportunity still exists.

View our latest analysis for MITSUI-SOKO HOLDINGS

Is MITSUI-SOKO HOLDINGS Still Cheap?

According to our valuation model, MITSUI-SOKO HOLDINGS seems to be fairly priced at around 13.90% above our intrinsic value, which means if you buy MITSUI-SOKO HOLDINGS today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is ¥5777.01, then there isn’t really any room for the share price grow beyond what it’s currently trading. What's more, MITSUI-SOKO HOLDINGS’s share price may be more stable over time (relative to the market), as indicated by its low beta.

What kind of growth will MITSUI-SOKO HOLDINGS 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 profit growth of 9.5% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for MITSUI-SOKO HOLDINGS, at least in the short term.

What This Means For You

Are you a shareholder? 9302’s 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 conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on 9302, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook 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.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. You'd be interested to know, that we found 1 warning sign for MITSUI-SOKO HOLDINGS and you'll want to know about it.

If you are no longer interested in MITSUI-SOKO HOLDINGS, 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.