What Is TPI Composites, Inc.'s (NASDAQ:TPIC) Share Price Doing?

By
Simply Wall St
Published
February 23, 2022
NasdaqGM:TPIC
Source: Shutterstock

While TPI Composites, Inc. (NASDAQ:TPIC) might not be the most widely known stock at the moment, it received a lot of attention from a substantial price movement on the NASDAQGM over the last few months, increasing to US$23.11 at one point, and dropping to the lows of US$9.80. 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 TPI Composites' current trading price of US$9.80 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 TPI Composites’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for TPI Composites

What's the opportunity in TPI Composites?

Good news, investors! TPI Composites is still a bargain right now. According to my valuation, the intrinsic value for the stock is $15.78, but it is currently trading at US$9.80 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because TPI Composites’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

What kind of growth will TPI Composites generate?

earnings-and-revenue-growth
NasdaqGM:TPIC Earnings and Revenue Growth February 23rd 2022

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. With profit expected to grow by 86% over the next couple of years, the future seems bright for TPI Composites. 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 TPIC is currently undervalued, 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 financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on TPIC 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 TPIC. 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 investment decision.

If you want to dive deeper into TPI Composites, you'd also look into what risks it is currently facing. For example - TPI Composites has 2 warning signs we think you should be aware of.

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

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.