Is INNOX Advanced Materials Co.,Ltd. (KOSDAQ:272290) Potentially Undervalued?

INNOX Advanced Materials Co.,Ltd. (KOSDAQ:272290), might not be a large cap stock, but it saw significant share price movement during recent months on the KOSDAQ, rising to highs of ₩50,700 and falling to the lows of ₩42,573. 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 INNOX Advanced MaterialsLtd's current trading price of ₩44,500 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 INNOX Advanced MaterialsLtd’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 INNOX Advanced MaterialsLtd

What is INNOX Advanced MaterialsLtd worth?

According to my valuation model, INNOX Advanced MaterialsLtd seems to be fairly priced at around 20% below my intrinsic value, which means if you buy INNOX Advanced MaterialsLtd today, you’d be paying a reasonable price for it. And if you believe the company’s true value is ₩55513.28, then there isn’t much room for the share price grow beyond what it’s currently trading. So, is there another chance to buy low in the future? Given that INNOX Advanced MaterialsLtd’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.

What does the future of INNOX Advanced MaterialsLtd look like?

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. INNOX Advanced MaterialsLtd's earnings over the next few years are expected to increase by 77%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? It seems like the market has already priced in A272290’s positive outlook, 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 confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping tabs on A272290, 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. You'd be interested to know, that we found 1 warning sign for INNOX Advanced MaterialsLtd and you'll want to know about it.

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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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