Is Now An Opportune Moment To Examine Austevoll Seafood ASA (OB:AUSS)?

Austevoll Seafood ASA (OB:AUSS), is not the largest company out there, but it received a lot of attention from a substantial price movement on the OB over the last few months, increasing to kr100 at one point, and dropping to the lows of kr83.35. 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 Austevoll Seafood's current trading price of kr83.45 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 Austevoll Seafood’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 Austevoll Seafood

Is Austevoll Seafood Still Cheap?

Good news, investors! Austevoll Seafood 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 6.37x is currently well-below the industry average of 15.12x, meaning that it is trading at a cheaper price relative to its peers. Austevoll Seafood’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its industry peers, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.

Can we expect growth from Austevoll Seafood?

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. However, with a relatively muted profit growth of 6.7% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Austevoll Seafood, at least in the short term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since AUSS is currently trading below the industry PE ratio, 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 price multiple.

Are you a potential investor? If you’ve been keeping an eye on AUSS for a while, now might be the time to enter the stock. Its future profit outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy AUSS. 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 investment decision.

With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. For example - Austevoll Seafood has 1 warning sign we think you should be aware of.

If you are no longer interested in Austevoll Seafood, 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.