What Is Systemair AB (publ)'s (STO:SYSR) Share Price Doing?

While Systemair AB (publ) (STO:SYSR) might not be the most widely known stock at the moment, it saw a decent share price growth in the teens level on the OM over the last few months. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s take a look at Systemair’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for Systemair

Is Systemair Still Cheap?

According to my valuation model, the stock is currently overvalued by about 21%, trading at kr88.50 compared to my intrinsic value of SEK72.84. Not the best news for investors looking to buy! But, is there another opportunity to buy low in the future? Given that Systemair’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

Can we expect growth from Systemair?

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. 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 profit expected to grow by 77% over the next couple of years, the future seems bright for Systemair. 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? SYSR’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe SYSR should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping an eye on SYSR for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook is encouraging for SYSR, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

If you'd like to know more about Systemair as a business, it's important to be aware of any risks it's facing. You'd be interested to know, that we found 1 warning sign for Systemair and you'll want to know about it.

If you are no longer interested in Systemair, 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.