What Does HEXPOL AB (publ)'s (STO:HPOL B) Share Price Indicate?

HEXPOL AB (publ) (STO:HPOL B), might not be a large cap stock, but it saw its share price hover around a small range of kr111 to kr121 over the last few weeks. But is this actually reflective of the share value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at HEXPOL’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 HEXPOL

What's The Opportunity In HEXPOL?

Good news, investors! HEXPOL is still a bargain right now. My valuation model shows that the intrinsic value for the stock is SEK167.35, but it is currently trading at kr119 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, HEXPOL’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What does the future of HEXPOL look like?

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 22% over the next couple of years, the future seems bright for HEXPOL. 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 HPOL B is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive 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 HPOL B 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 HPOL B. 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.

It can be quite valuable to consider what analysts expect for HEXPOL from their most recent forecasts. So feel free to check out our free graph representing analyst forecasts.

If you are no longer interested in HEXPOL, 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.