Is Now The Time To Look At Buying Cryomax Cooling System Corp. (TPE:1587)?

Cryomax Cooling System Corp. (TPE:1587), might not be a large cap stock, but it saw significant share price movement during recent months on the TSEC, rising to highs of NT$28.80 and falling to the lows of NT$24.70. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Cryomax Cooling System's current trading price of NT$25.40 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Cryomax Cooling System’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for Cryomax Cooling System

What is Cryomax Cooling System worth?

Good news, investors! Cryomax Cooling System 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 Cryomax Cooling System’s ratio of 12.2x is below its peer average of 27.1x, which indicates the stock is trading at a lower price compared to the Auto Components industry. What’s more interesting is that, Cryomax Cooling System’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to move closer to its industry peers, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.

What kind of growth will Cryomax Cooling System generate?

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. With revenues expected to grow by a double-digit 21% in the upcoming year, the outlook is positive for Cryomax Cooling System. If the level of expenses is able to be maintained, 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 1587 is currently trading below the industry PE ratio, it may be a great time to accumulate more of your holdings in the stock. With an optimistic 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 price multiple.

Are you a potential investor? If you’ve been keeping an eye on 1587 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 1587. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed assessment.

If you'd like to know more about Cryomax Cooling System as a business, it's important to be aware of any risks it's facing. Case in point: We've spotted 4 warning signs for Cryomax Cooling System you should be mindful of and 1 of them can't be ignored.

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

When trading Cryomax Cooling System or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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