When Should You Buy Yanlord Land Group Limited (SGX:Z25)?

April 08, 2022
  •  Updated
July 16, 2022
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Yanlord Land Group Limited (SGX:Z25), might not be a large cap stock, but it saw a decent share price growth in the teens level on the SGX over the last few months. 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 Yanlord Land Group’s outlook and valuation to see if the opportunity still exists.

View our latest analysis for Yanlord Land Group

What is Yanlord Land Group worth?

According to my valuation model, Yanlord Land Group seems to be fairly priced at around 10% below my intrinsic value, which means if you buy Yanlord Land Group today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth SGD1.43, then there’s not much of an upside to gain from mispricing. Furthermore, Yanlord Land Group’s low beta implies that the stock is less volatile than the wider market.

Can we expect growth from Yanlord Land Group?

SGX:Z25 Earnings and Revenue Growth April 8th 2022

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. Though in the case of Yanlord Land Group, it is expected to deliver a relatively unexciting earnings growth of 2.4%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.

What this means for you:

Are you a shareholder? Z25’s future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping tabs on Z25, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

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. To help with this, we've discovered 2 warning signs (1 is significant!) that you ought to be aware of before buying any shares in Yanlord Land Group.

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.

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About SGX:Z25

Yanlord Land Group

Yanlord Land Group Limited, an investment holding company, operates as a real estate developer in the People's Republic of China, Singapore, and Hong Kong.

Very undervalued with mediocre balance sheet.