When Should You Buy Hyosung TNC Corporation (KRX:298020)?

Hyosung TNC Corporation (KRX:298020), is not the largest company out there, but it received a lot of attention from a substantial price increase on the KOSE over the last few months. 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 examine Hyosung TNC’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

See our latest analysis for Hyosung TNC

What's the opportunity in Hyosung TNC?

According to my valuation model, Hyosung TNC seems to be fairly priced at around 0.53% above my intrinsic value, which means if you buy Hyosung TNC today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is ₩573986.57, there’s only an insignificant downside when the price falls to its real value. What's more, Hyosung TNC’s share price may be more stable over time (relative to the market), as indicated by its low beta.

Can we expect growth from Hyosung TNC?

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. Hyosung TNC'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? A298020’s optimistic 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 tabs on A298020, now may not be the most advantageous 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 diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. In terms of investment risks, we've identified 2 warning signs with Hyosung TNC, and understanding these should be part of your investment process.

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This 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.
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