At ₩12,540, Is It Time To Put SK oceanplant Co.,Ltd (KRX:100090) On Your Watch List?

SK oceanplant Co.,Ltd (KRX:100090), is not the largest company out there, but it saw significant share price movement during recent months on the KOSE, rising to highs of ₩19,680 and falling to the lows of ₩12,540. 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 SK oceanplantLtd's current trading price of ₩12,540 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 SK oceanplantLtd’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for SK oceanplantLtd

Is SK oceanplantLtd Still Cheap?

According to our price multiple model, which makes a comparison between the company's price-to-earnings ratio and the industry average, the stock price seems to be justfied. We’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 12.92x is currently trading slightly below its industry peers’ ratio of 13.34x, which means if you buy SK oceanplantLtd today, you’d be paying a reasonable price for it. And if you believe that SK oceanplantLtd should be trading at this level in the long run, then there’s not much of an upside to gain over and above other industry peers. Is there another opportunity to buy low in the future? Since SK oceanplantLtd’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. 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.

Can we expect growth from SK oceanplantLtd?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. With profit expected to grow by 68% over the next couple of years, the future seems bright for SK oceanplantLtd. 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 A100090’s positive outlook, with shares trading around industry price multiples. 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 A100090? Will you have enough confidence to invest in the company should the price drop below the industry PE ratio?

Are you a potential investor? If you’ve been keeping tabs on A100090, now may not be the most advantageous time to buy, given it is trading around industry price multiples. However, the positive outlook is encouraging for A100090, 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 SK oceanplantLtd, you'd also look into what risks it is currently facing. Every company has risks, and we've spotted 2 warning signs for SK oceanplantLtd (of which 1 can't be ignored!) you should know about.

If you are no longer interested in SK oceanplantLtd, 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.