Should You Investigate CHEMTRONICS.Co.,Ltd. (KOSDAQ:089010) At ₩24,500?

While CHEMTRONICS.Co.,Ltd. (KOSDAQ:089010) might not have the largest market cap around , it saw a double-digit share price rise of over 10% in the past couple of months on the KOSDAQ. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. Less-covered, small caps sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Today we will analyse the most recent data on CHEMTRONICS.Co.Ltd’s outlook and valuation to see if the opportunity still exists.

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Is CHEMTRONICS.Co.Ltd Still Cheap?

CHEMTRONICS.Co.Ltd is currently expensive based on our price multiple model, where we look at the company's price-to-earnings ratio in comparison to the industry average. 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 18.37x is currently well-above the industry average of 14.37x, meaning that it is trading at a more expensive price relative to its peers. If you like the stock, you may want to keep an eye out for a potential price decline in the future. Given that CHEMTRONICS.Co.Ltd’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 another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

See our latest analysis for CHEMTRONICS.Co.Ltd

What does the future of CHEMTRONICS.Co.Ltd 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. 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 a double-digit 19% in the upcoming year, the short-term outlook is positive for CHEMTRONICS.Co.Ltd. 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 well and truly priced in A089010’s positive outlook, with shares trading above industry price multiples. However, this brings up another question – is now the right time to sell? If you believe A089010 should trade below its current price, selling high and buying it back up again when its price falls towards the industry PE ratio can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping tabs on A089010 for some time, now may not be the best time to enter into the stock. The price has surpassed its industry peers, which means it is likely that there is no more upside from mispricing. However, the positive outlook is encouraging for A089010, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

If you want to dive deeper into CHEMTRONICS.Co.Ltd, you'd also look into what risks it is currently facing. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of CHEMTRONICS.Co.Ltd.

If you are no longer interested in CHEMTRONICS.Co.Ltd, 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.