At ر.س57.10, Is It Time To Put The Power and Water Utility Company for Jubail and Yanbu (TADAWUL:2083) On Your Watch List?

While The Power and Water Utility Company for Jubail and Yanbu (TADAWUL:2083) might not have the largest market cap around , it saw significant share price movement during recent months on the SASE, rising to highs of ر.س61.90 and falling to the lows of ر.س54.00. 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 Power and Water Utility Company for Jubail and Yanbu's current trading price of ر.س57.10 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Power and Water Utility Company for Jubail and Yanbu’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 Power and Water Utility Company for Jubail and Yanbu

What Is Power and Water Utility Company for Jubail and Yanbu Worth?

According to our valuation model, Power and Water Utility Company for Jubail and Yanbu seems to be fairly priced at around 18% below our intrinsic value, which means if you buy Power and Water Utility Company for Jubail and Yanbu today, you’d be paying a reasonable price for it. And if you believe the company’s true value is SAR69.23, then there isn’t much room for the share price grow beyond what it’s currently trading. In addition to this, Power and Water Utility Company for Jubail and Yanbu has a low beta, which suggests its share price is less volatile than the wider market.

What kind of growth will Power and Water Utility Company for Jubail and Yanbu generate?

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. Though in the case of Power and Water Utility Company for Jubail and Yanbu, it is expected to deliver a relatively unexciting top-line growth of 3.7% in the next few years, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.

What This Means For You

Are you a shareholder? 2083’s future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on 2083, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook 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.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. For example, Power and Water Utility Company for Jubail and Yanbu has 2 warning signs (and 1 which is a bit unpleasant) we think you should know about.

If you are no longer interested in Power and Water Utility Company for Jubail and Yanbu, 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.