Is Now The Time To Look At Buying Yanlord Land Group Limited (SGX:Z25)?

While Yanlord Land Group Limited (SGX:Z25) might not be the most widely known stock at the moment, it saw its share price hover around a small range of S$1.10 to S$1.21 over the last few weeks. But is this actually reflective of the share value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Yanlord Land Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for Yanlord Land Group

What is Yanlord Land Group worth?

Good news, investors! Yanlord Land Group is still a bargain right now according to my price multiple model, which compares the company's price-to-earnings ratio to the industry average. In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that Yanlord Land Group’s ratio of 3.51x is below its peer average of 14.26x, which indicates the stock is trading at a lower price compared to the Real Estate industry. However, given that Yanlord Land Group’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 Yanlord Land Group?

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. However, with a relatively muted profit growth of 3.3% expected over the next year, growth doesn’t seem like a key driver for a buy decision for Yanlord Land Group, at least in the short term.

What this means for you:

Are you a shareholder? Even though growth is relatively muted, since Z25 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 Z25 for a while, now might be the time to make a leap. Its future profit outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy Z25. 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 investment decision.

In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. For example - Yanlord Land Group has 2 warning signs we think you should be aware of.

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

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.

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