Is Now The Time To Look At Buying OCI N.V. (AMS:OCI)?

While OCI N.V. (AMS:OCI) might not have the largest market cap around , it saw its share price hover around a small range of €24.08 to €26.43 over the last few weeks. But is this actually reflective of the share value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at OCI’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for OCI

What Is OCI Worth?

According to our valuation model, OCI seems to be fairly priced at around 0.51% above our intrinsic value, which means if you buy OCI today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is €24.67, then there isn’t really any room for the share price grow beyond what it’s currently trading. In addition to this, OCI has a low beta, which suggests its share price is less volatile than the wider market.

Can we expect growth from OCI?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. With revenues expected to grow by 41% over the next couple of years, the future seems bright for OCI. If the level of expenses is able to be maintained, 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 already priced in OCI’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 OCI, now may not be the most optimal 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. While conducting our analysis, we found that OCI has 1 warning sign and it would be unwise to ignore it.

If you are no longer interested in OCI, 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.