Should You Investigate Airtac International Group (TWSE:1590) At NT$940?

While Airtac International Group (TWSE:1590) might not have the largest market cap around , it received a lot of attention from a substantial price increase on the TWSE over the last few months. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s examine Airtac International Group’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

View our latest analysis for Airtac International Group

What Is Airtac International Group Worth?

According to our valuation model, Airtac International Group seems to be fairly priced at around 5.76% above our intrinsic value, which means if you buy Airtac International Group today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth NT$888.80, there’s only an insignificant downside when the price falls to its real value. What's more, Airtac International Group’s share price may be more stable over time (relative to the market), as indicated by its low beta.

What does the future of Airtac International Group 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. With profit expected to grow by 38% over the next couple of years, the future seems bright for Airtac International Group. 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? It seems like the market has already priced in 1590’s positive outlook, 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 conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on 1590, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. While conducting our analysis, we found that Airtac International Group has 2 warning signs and it would be unwise to ignore these.

If you are no longer interested in Airtac International Group, 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.