At kr16.30, Is IMINT Image Intelligence AB (publ.) (NGM:IMINT) Worth Looking At Closely?

IMINT Image Intelligence AB (publ.) (NGM:IMINT), is not the largest company out there, but it saw a double-digit share price rise of over 10% in the past couple of months on the NGM. Less-covered, small caps sees more of an opportunity for mispricing due to the lack of information available to the public, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Today I will analyse the most recent data on IMINT Image Intelligence AB (publ.)’s outlook and valuation to see if the opportunity still exists.

View our latest analysis for IMINT Image Intelligence AB (publ.)

Is IMINT Image Intelligence AB (publ.) Still Cheap?

Great news for investors – IMINT Image Intelligence AB (publ.) is still trading at a fairly cheap price according to my price multiple model, where I compare 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 10.79x is currently well-below the industry average of 40.74x, meaning that it is trading at a cheaper price relative to its peers. However, given that IMINT Image Intelligence AB (publ.)’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.

What does the future of IMINT Image Intelligence AB (publ.) look like?

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 5.9% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for IMINT Image Intelligence AB (publ.), at least in the short term.

What This Means For You

Are you a shareholder? Even though growth is relatively muted, since IMINT is currently trading below the industry PE ratio, it may be a great time to accumulate more of 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 IMINT 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 IMINT. 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 assessment.

If you'd like to know more about IMINT Image Intelligence AB (publ.) as a business, it's important to be aware of any risks it's facing. For example - IMINT Image Intelligence AB (publ.) has 3 warning signs we think you should be aware of.

If you are no longer interested in IMINT Image Intelligence AB (publ.), 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.