Is Now The Time To Look At Buying ASM International NV (AMS:ASM)?

August 08, 2022
  •  Updated
November 18, 2022
ENXTAM:ASM
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ASM International NV (AMS:ASM) received a lot of attention from a substantial price increase on the ENXTAM over the last few months. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Today I will analyse the most recent data on ASM International’s outlook and valuation to see if the opportunity still exists.

View our latest analysis for ASM International

What's The Opportunity In ASM International?

Great news for investors – ASM International is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is €436.40, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Although, there may be another chance to buy again in the future. This is because ASM International’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

What does the future of ASM International look like?

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ENXTAM:ASM Earnings and Revenue Growth August 8th 2022

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 45% over the next couple of years, the future seems bright for ASM International. 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 ASM is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic 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 capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on ASM for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ASM. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.

With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. You'd be interested to know, that we found 1 warning sign for ASM International and you'll want to know about it.

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

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