Should You Think About Buying SAMWHA CAPACITOR Co.,LTD (KRX:001820) Now?

SAMWHA CAPACITOR Co.,LTD (KRX:001820), is not the largest company out there, but it saw significant share price movement during recent months on the KOSE, rising to highs of ₩48,900 and falling to the lows of ₩33,700. 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 SAMWHA CAPACITORLTD's current trading price of ₩33,700 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 SAMWHA CAPACITORLTD’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 SAMWHA CAPACITORLTD

What's The Opportunity In SAMWHA CAPACITORLTD?

SAMWHA CAPACITORLTD 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 14.8x is currently well-above the industry average of 12.27x, meaning that it is trading at a more expensive price relative to its peers. But, is there another opportunity to buy low in the future? Given that SAMWHA CAPACITORLTD’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.

Can we expect growth from SAMWHA CAPACITORLTD?

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 92% over the next couple of years, the future seems bright for SAMWHA CAPACITORLTD. 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 A001820’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 A001820 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 A001820 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 optimistic prospect is encouraging for A001820, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. At Simply Wall St, we found 1 warning sign for SAMWHA CAPACITORLTD and we think they deserve your attention.

If you are no longer interested in SAMWHA CAPACITORLTD, 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.