Why PostNL N.V. (AMS:PNL) Could Be Worth Watching

PostNL N.V. (AMS:PNL), might not be a large cap stock, but it led the ENXTAM gainers with a relatively large price hike in the past couple of weeks. As a 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? Let’s take a look at PostNL’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for PostNL

What Is PostNL Worth?

Great news for investors – PostNL is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is €3.00, but it is currently trading at €1.83 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because PostNL’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.

Can we expect growth from PostNL?

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. However, with a relatively muted revenue growth of 6.6% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for PostNL, at least in the short term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since PNL is currently undervalued, it may be a great time to increase your holdings in the stock. 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 PNL for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy PNL. 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 buy.

With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. Every company has risks, and we've spotted 3 warning signs for PostNL (of which 2 are a bit unpleasant!) you should know about.

If you are no longer interested in PostNL, 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.