At ₩51,600, Is Kolmar Korea Co., Ltd. (KRX:161890) Worth Looking At Closely?

Kolmar Korea Co., Ltd. (KRX:161890), is not the largest company out there, but it saw a double-digit share price rise of over 10% in the past couple of months on the KOSE. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Today I will analyse the most recent data on Kolmar Korea’s outlook and valuation to see if the opportunity still exists.

Check out our latest analysis for Kolmar Korea

Is Kolmar Korea still cheap?

According to my valuation model, Kolmar Korea seems to be fairly priced at around 16% below my intrinsic value, which means if you buy Kolmar Korea today, you’d be paying a reasonable price for it. And if you believe the company’s true value is ₩61175.86, then there’s not much of an upside to gain from mispricing. In addition to this, Kolmar Korea has a low beta, which suggests its share price is less volatile than the wider market.

Can we expect growth from Kolmar Korea?

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. With profit expected to more than double over the next couple of years, the future seems bright for Kolmar Korea. 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? A161890’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 track record of its management team. 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 A161890, 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 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. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of Kolmar Korea.

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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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