Is Now An Opportune Moment To Examine Albany International Corp. (NYSE:AIN)?

By
Simply Wall St
Published
November 26, 2021
NYSE:AIN
Source: Shutterstock

Albany International Corp. (NYSE:AIN), might not be a large cap stock, but it saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. 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. However, what if the stock is still a bargain? Let’s take a look at Albany International’s outlook and value based on the most recent financial data to see if the opportunity still exists.

View our latest analysis for Albany International

What's the opportunity in Albany International?

According to my valuation model, Albany International seems to be fairly priced at around 19.89% above my intrinsic value, which means if you buy Albany International today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is $68.97, then there isn’t really any room for the share price grow beyond what it’s currently trading. So, is there another chance to buy low in the future? Given that Albany International’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.

Can we expect growth from Albany International?

earnings-and-revenue-growth
NYSE:AIN Earnings and Revenue Growth November 27th 2021

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. Though in the case of Albany International, it is expected to deliver a relatively unexciting earnings growth of 9.6%, 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? AIN’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 AIN, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook 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.

Diving deeper into the forecasts for Albany International mentioned earlier will help you understand how analysts view the stock going forward. So feel free to check out our free graph representing analyst forecasts.

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

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