Should You Think About Buying Mycronic AB (publ) (STO:MYCR) Now?

While Mycronic AB (publ) (STO:MYCR) might not have the largest market cap around , it saw a significant share price rise of 26% in the past couple of months on the OM. The company is inching closer to its yearly highs following the recent share price climb. As a kr26b market-cap stock, it seems odd Mycronic is not more well-covered by analysts. However, this is not necessarily a bad thing given that there are less eyes on the stock to push it closer to fair value. Is there still an opportunity to buy? Let’s take a look at Mycronic’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for Mycronic

What Is Mycronic Worth?

Great news for investors – Mycronic is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is SEK388.50, but it is currently trading at kr270 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Mycronic’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 Mycronic 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. Mycronic's earnings over the next few years are expected to increase by 77%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since MYCR 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 MYCR for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy MYCR. 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 Mycronic from their most recent forecasts. So feel free to check out our free graph representing analyst forecasts.

If you are no longer interested in Mycronic, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.