SES S.A. (BDL:SESGL), is not the largest company out there, but it saw a significant share price rise of over 20% in the past couple of months on the BDL. 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. However, could the stock still be trading at a relatively cheap price? Today I will analyse the most recent data on SES’s outlook and valuation to see if the opportunity still exists.
View our latest analysis for SES
What Is SES Worth?
According to my valuation model, SES seems to be fairly priced at around 14% below my intrinsic value, which means if you buy SES today, you’d be paying a reasonable price for it. And if you believe the company’s true value is €6.63, then there’s not much of an upside to gain from mispricing. Furthermore, SES’s low beta implies that the stock is less volatile than the wider market.
What kind of growth will SES generate?
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. Though in the case of SES, it is expected to deliver a relatively unexciting top-line growth of 3.9% in the next few years, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.
What This Means For You
Are you a shareholder? It seems like the market has already priced in SESGL’s future 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 conviction to buy should the price fluctuates below the true value?
Are you a potential investor? If you’ve been keeping tabs on SESGL, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth further examining other factors such as the strength of its balance sheet, 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. While conducting our analysis, we found that SES has 3 warning signs and it would be unwise to ignore them.
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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.
About BDL:SESGL
SES
Provides satellite-based data transmission capacity and ancillary services worldwide.
Adequate balance sheet and fair value.
