Stock Analysis

What Is FoundPac Group Berhad's (KLSE:FPGROUP) Share Price Doing?

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KLSE:FPGROUP
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FoundPac Group Berhad (KLSE:FPGROUP), might not be a large cap stock, but it received a lot of attention from a substantial price movement on the KLSE over the last few months, increasing to RM0.69 at one point, and dropping to the lows of RM0.43. 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 FoundPac Group Berhad's current trading price of RM0.43 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 FoundPac Group Berhad’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for FoundPac Group Berhad

What is FoundPac Group Berhad worth?

Good news, investors! FoundPac Group Berhad is still a bargain right now according to my price multiple model, which compares the company's price-to-earnings ratio to the industry average. I’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 19.48x is currently well-below the industry average of 30.78x, meaning that it is trading at a cheaper price relative to its peers. However, given that FoundPac Group Berhad’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.

What does the future of FoundPac Group Berhad look like?

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KLSE:FPGROUP Earnings and Revenue Growth March 5th 2022

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 22% over the next year, the near-term future seems bright for FoundPac Group Berhad. 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? Since FPGROUP is currently trading below the industry PE ratio, it may be a great time to accumulate more of your holdings in the stock. With a positive profit outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current price multiple.

Are you a potential investor? If you’ve been keeping an eye on FPGROUP for a while, now might be the time to make a leap. Its prosperous future profit outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy FPGROUP. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision.

If you'd like to know more about FoundPac Group Berhad as a business, it's important to be aware of any risks it's facing. Case in point: We've spotted 3 warning signs for FoundPac Group Berhad you should be aware of.

If you are no longer interested in FoundPac Group Berhad, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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