At NT$413, Is Nien Made Enterprise Co., LTD. (TPE:8464) Worth Looking At Closely?

While Nien Made Enterprise Co., LTD. (TPE:8464) might not be the most widely known stock at the moment, it saw a significant share price rise of over 20% in the past couple of months on the TSEC. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Today I will analyse the most recent data on Nien Made Enterprise’s outlook and valuation to see if the opportunity still exists.

View our latest analysis for Nien Made Enterprise

What's the opportunity in Nien Made Enterprise?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 15.44% above my intrinsic value, which means if you buy Nien Made Enterprise today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is NT$357.32, then there isn’t really any room for the share price grow beyond what it’s currently trading. Furthermore, Nien Made Enterprise’s low beta implies that the stock is less volatile than the wider market.

Can we expect growth from Nien Made Enterprise?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. Nien Made Enterprise's earnings over the next few years are expected to increase by 51%, 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? 8464’s optimistic 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 an eye on 8464, now may not be the most advantageous 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.

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. At Simply Wall St, we found 1 warning sign for Nien Made Enterprise and we think they deserve your attention.

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

When trading Nien Made Enterprise 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.